Published
2 weeks ago on
June 01, 2024
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The Polkadot (DOT) price faced significant resistance at $7.60, following which it declined considerably to below the $7 level over the next few sessions.
Polkadot (DOT) had seen a bullish few days, during which the price jumped from its support level of $6.40 to $7.50, but sellers seemed to have reversed the trend.
Can Polkadot (DOT) Hold Above $7
Polkadot (DOT) came across significant selling pressure at $7.60, leading to the price registering a considerable decline. Currently, DOT is confined within a range marked by the resistance at $7.60, which is also where the 200-day SMA is currently located, and the support at $6.40. DOT saw a rejection at this level on May 21, with the price dropping to $7.20 by the 23rd after slipping below the 200-day SMA. However, it found support at the 50-day SMA, registering a 0.69% increase on the 24th after a highly volatile session. DOT continued its upward momentum on the 25th, moving to $7.42, bringing it to the upper limit of its price range.
Buyers retained control on the 26th as DOT continued its upward trajectory and moved past the 200-day SMA to $7.55. DOT began the current week with yet another volatile session that saw the price reach a high of $7.78 and a low of $7.37 before recovering and settling at $7.63. However, it could not move past this level and saw a significant drop on Tuesday, falling below the 200-day SMA and settling at $7.36. Wednesday saw buyers try to regain control as DOT rose to $7.56, but it was unable to go beyond the 200-day SMA as sellers regained control and pushed the price down to $7.17. DOT remained bearish on Thursday and Friday, slipping below $7 to $6.97.
After retracing to this level, DOT has managed to reverse the bearish trend during the ongoing session after finding support at the $7 level. Currently, the price is up by 1% and is trading at $7.04.
Another Decline For Polkadot (DOT)?
As we can see from the Polkadot (DOT) price chart, the asset is currently confined within a decisive range, the upper end of which sits at $7.60, while the lower end sits at the $6.40 support level. Any significant price movement would require DOT to move beyond these price levels. Currently, DOT is trading just above the $7 mark. Should buyers retake control of the current session, we could see DOT move to $7.20 and then to $7.50, where the 200-day SMA could act as resistance.
Source: TradingView
However, if sellers push DOT below $7, it could drop to its support level of $6.40. To summarize, DOT stands at a critical point. A failure to stay above its current support levels could cause DOT to register significant declines. If the price stays above $7, we could see some sideways consolidation before yet another potential recovery, but whether DOT can break out of its current price range remains to be seen.
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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