Published
2 weeks ago on
June 04, 2024
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Polkadot (DOT) has managed to stay above $7 after an extremely bearish week that saw the price slip to $6.97 before registering a marginal recovery over the weekend.
The current session sees Polkadot (DOT) trading just above $7 as buyers and sellers battle to take control of the session.
Can Polkadot (DOT) Break Its Current Pattern
Looking at the Polkadot (DOT) price chart, we can see that the asset is range-bound within a rising wedge pattern. This has been the case since the middle of April, with DOT initially oscillating between its support level of $6.40 and $7.60 and then between $7 and $7.60. DOT saw a significant decline after failing to break past the resistance at $7.60, dropping by 3.54% on Tuesday. This saw the price go below the 200-day SMA as well. Wednesday saw sellers retain control as DOT dropped as low as $7.27 before recovering and settling at $7.17, a drop of 2.58%.
Source: TradingView
Thursday saw DOT slip below the 20-day and 50-day SMAs as sellers pushed the price down to $6.99. However, after a highly volatile session on Friday, DOT was able to settle at $6.97, a drop of 0.29%. This was after the price fell as low as $6.80 before buyers entered the market, pushing the price back towards $7. The weekend saw DOT register an increase of 1.29% on Saturday, rising to $7.06, before dropping to $6.99 on Sunday. The current week started with a highly volatile session as DOT surged to $7.19. However, it could not move past the 20-day SMA, and sellers pushed the price back down to $7.01. Crucially, DOT was able to stay above the $7 mark. The current session sees buyers in control, although only just, with DOT trading at $7.02.
Where Does Polkadot (DOT) Go From Here?
As we can see from the Polkadot (DOT) price chart, DOT has been unable to move past the resistance at $7.60, having been pushed back from this level twice. DOT has support at $7 and $6.40. Should DOT stage a recovery from this level, it would first need to get past $7.20, where the 20-day SMA could act as resistance. If this level is broken, DOT could test the resistance at $7.60. Should DOT be able to move past this level, we could see the price touch $8. However, should sellers take control and breach the support at $7, DOT could retrace back to $6.40.
Source: TradingView
Looking at the technical indicators, we can see that the MACD has flipped to bearish. However, if DOT can recover and push above $7.20, it could flip back to bullish.
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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