Polkadot (DOT) saw a sharp midweek decline after bears provided strong resistance at the $7.5 level, leading to a decline of over 5% to $7.19.
While DOT is still moving range-bound, its support level has held firm, and the price is now testing the higher boundary of this range. Whether it registers a decline or breaks above $7.50 remains to be seen.
Polkadot (DOT) Registers Drop From $7.5
The Polkadot (DOT) price saw a sharp decline from $7.62, as bears provided a strong level of resistance at the 200-day SMA. DOT had ended the previous week in the red after dropping 3.21% on Sunday and dropping to $6.93. However, it was able to find support thanks to the 20-day SMA. As bullish sentiment returned to the markets, DOT started the week with a staggering increase of 9.38% as buyers took control. This surge helped DOT move past the 20-day, 50-day, and 200-day SMAs, rising to $7.58.
This level was a crucial level of resistance, and after a highly volatile session on Tuesday, DOT registered a marginal increase of 0.53%. However, sellers took control on Wednesday, pushing DOT down by $7.46%. The bearish sentiment intensified on Thursday, with DOT going as low as $6.91 and slipping below the 50 and 20-day SMAs. However, it recovered and went back above $7, registering a decline of 3.49% and settling at $7.20, just above the 50-day SMA.
DOT registered a marginal increase on Friday after yet another volatile day that saw the price go as high as $7.39 and as low as $7.02 before settling at $7.25. Crucially, DOT was able to stay above $7, indicating that support is building at the 5-day SMA. The current session sees DOT at $7.29, up by 0.55%. If buyers retain control of the session, we could see DOT test the resistance at $7.50 once again.
Could Polkadot (DOT) See Another Decline?
As we can see from the Polkadot (DOT) price chart, DOT’s support level at $6 is holding firm. After its drop on Thursday, DOT was able to stabilize at the 50-day SMA, indicating that buyers are entering the market at this point. The nearest resistance level is $7.50, which has already been tested once. Should support continue to build at the 50-day SMA, we could see DOT test this level once more.
However, should the price see a reversal, DOT could drop to $7.20 or $7. If DOT stays above $7 and is able to move past the resistance at $7.50, we could see the price reach $8 or go even higher. DOT did come close to breaking past $7.50 this week, but bears were able to push the price back down. Looking at the technical indicators, we can see the MACD is currently bullish. The RSI is also in the neutral zone, giving DOT plenty of room for a price increase without slipping into overbought territory.
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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