The Polkadot (DOT) price is currently at $7.20. After a positive start to the week, the price has consolidated over the crucial $7 level.
Polkadot (DOT) faces strong resistance at $7.5, a level that has consistently prevented the price from rising further, leading to a reversal from a positive to a negative trend. On the other hand, the price has found support at $7, a level where buying pressure has historically been strong enough to prevent the price from falling further.
Is Polkadot (DOT) Stuck In A Loop?
If we look at the bigger picture, Polkadot has yet to make significant gains since the middle of March, when it rocketed to $11.55. However, DOT has registered a sharp decline since then, dropping to as low as $5.80. While it has recovered from these levels, DOT has been range-bound, oscillating between a low of $6.40 and a high of $7.50 since the 14th of April. DOT has faced rejection from the $7.50-$7.60 range on three occasions since then, dropping back to its support level of $6.40 and registering a recovery. DOT also has a level of support at $7, although it is still to break past $7.50.
As we can see from the Polkadot price chart, DOT spent nearly all of last week in the red, dropping to $6.97 by Friday after a highly volatile session. DOT recovered on Saturday as buyers entered the market, pushing DOT up by 1.12% to $7.05. However, it was back in the red on Sunday, dropping by 0.96% to $6.98. The current week started with DOT experiencing considerable volatility, going as high as $7.18. However, sellers pushed the price back from this level, with DOT eventually settling at $7.
Source: TradingView
Tuesday saw DOT stage a recovery from its previous level as sellers entered the market, pushing the price up by 2.40% to $7.17. DOT’s upward trajectory continued on Wednesday, as it rose to $7.25. However, the current session sees DOT back in the red, with sellers currently in control.
Polkadot (DOT) Crucial Support And Resistance Levels
Looking at the Polkadot (DOT) price chart, we can see the crucial levels of support and resistance that will dictate DOT’s future price movements. DOT currently faces strong resistance at $7.50, a level where the 200-day Simple Moving Average (SMA) is positioned. The 200-day SMA is a long-term trend indicator, and a break above it could signal a bullish trend. DOT also faces resistance at $7.20, where the 20-day SMA is positioned. The 20-day SMA is a short-term trend indicator, and a break above it could indicate a short-term bullish trend. While DOT did test this level, it has failed to move past it so far. DOT has strong support at $7 and $6.40, both of which have been tested and have held, allowing DOT to recover.
So, where does DOT go from here? If DOT can go past the 20-day SMA, we could see the price rise to $7.50 and test the resistance once again. If it can break the resistance, we could see DOT surge to $8. However, so far, DOT has failed to move past $7.50. Should DOT face rejection, we could see the price drop to $7. A drop from this level could see DOT drop back to $6.40.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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