Price analysis of Polkadot: DOT Records a Dramatic Drop. Will It Continue Above $6.40?
On Friday, Polkadot (DOT) saw a notable decline of over 7% as sellers forced the asset’s price below $7, a critical mark.
DOT saw a decline to as low as $6.06, breaking through its support levels before mounting a comeback and closing at $6.65. DOT is still losing money in this session as sellers continue to hold the reins.
Polkadot (DOT) Reports a Dramatic Drop
Polkadot (DOT) saw a significant drop just as it appeared that the asset would recover, sending it back down the path of fall. Following the conclusion of the DOT, which had closed the previous week in the red, rebounded above $7 on Saturday, reaching $7.06, before falling to $6.99 on Sunday. DOT did, however, begin this week’s events positively, albeit enduring exceptionally high volatility. This volatility caused DOT to spike up to $7.18 but then drop back to $7. The 50-day SMA provided DOT with significant support at this level, as can be seen in the price chart.
DOT experienced a boost of 2.41% on Tuesday, reaching $7.17; on Wednesday, it increased by 1.06% to $7.25. But with the 20-day SMA serving as support at this point, DOT reverted to negative territory on Thursday, falling 1.57% and settling at $7.13. Remember, DOT had support at the $7 level at this point. However, this support level was broken on Friday after DOT plunged by 6.75% and fell to $6.65 as a result of sellers controlling the market and driving the price down to $6.06. But when more buyers entered the market, DOT managed to move back over its $6.40 support level and close at $6.65. DOT is down 2.70 percent as of the current trading session, trading at $6.47.
Is Polkadot (DOT) Able to Continue Above Support?
The Polkadot (DOT) price chart shows a significant drop during the most recent session. With Friday’s steep decline, sellers broke through the $7 level of support, which caused DOT to plummet. The final settlement for DOT was $6.65. What direction does DOT take next? Support for DOT is at $6.40, a price that has held for three prior instances. If this threshold is crossed, we might see DC. drop to $6. If DOT manages to recover, we could witness a return to $7. However, it is unclear if it will be able to overcome the resistance levels of $7.20 and $7.50.
TradeView is the source.
DOT’s indicators show that the MACD has turned to a bearish position, suggesting that selling pressure and a return to bearish sentiment may be forthcoming.
Disclaimer: The only goal of this article is informational. It is not meant to serve as financial, investing, tax, legal, or other advice.
SOURCE : Crypto Daily