Polkadot Price Analysis: DOT Battles To Stay Above $7

Polkadot (DOT) is battling to stay above $7 after a weekend dominated by sellers. The price dropped to $6.93 on Sunday after considerable gains during the previous week. 

Polkadot (DOT) had a fairly strong showing during the previous week, rising by 6,58% over the past seven days. 

Polkadot (DOT) Drops Below $7 After Strong Week 

After a strong week, Polkadot (DOT) fell back into the red over the weekend, slipping back below the crucial $7 mark. DOT started the previous week with a highly volatile day that saw the price go as high as $6.82 and as low as $6.43 before settling at $6.67. Tuesday saw sellers push the price significantly lower, dropping DOT by 2.83% to $6.48. However, as seen in the price chart, DOT has strong support at $6.40, and the following session saw the price soar by 7.44% and go past the 20-day SMA and settle at $6.96. However, it was unable to move past the $7 mark.

DOT did go past $7 on Thursday in yet another volatile session that saw sellers push the price down to $6.82 before it recovered and settled at $7.03. Friday saw buyers tighten their grip on the market, with DOT registering an increase of 2.42% and settling at $7.20. However, bears were able to reverse the bullish momentum over the weekend, pushing DOT down marginally on Saturday. The selling pressure intensified on Sunday, with DOT dropping below the 20-day SMA to $6.93. While many expected the 20-day SMA to act as a level of support for DOT, sellers were easily able to breach this level. 

The current session sees DOT at $7 as buyers look to reestablish control and push DOT back above $7. 

Is Polkadot (DOT) Following A Similar Pattern?

As we can see in the price chart above, DOT has a strong level of support that has been tested on multiple occasions but has held firm, with the price making a strong recovery from this level. However, the chart also shows us that DOT has been oscillating between $6.40 and $7.50 for over a month. The recent rejection and drop over the weekend could see DOT drop back to its support level before making a quick recovery, a pattern that has been repeated on three occasions.

If DOT has to make any substantial movement and break this pattern,  it must first move past $7.50. Should this happen, we could see DOT move to $8 and potentially $8.50. However, we must also note that the 200-day SMA and the 50-day SMA have performed a bearish cross and take into account their impact on the DOT price. The MACD, on the other hand, is still bullish, indicating robust buying activity.

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.

Credit: Source link