POLKADOT Price Analysis 10-23: DOT Continues Decline As Bearish Sentiment Intensifies

Polkadot (DOT) continued declining this week, shedding over 3% in the past 24 hours, as selling pressure continues to weigh down its price.

After reaching a day high of $4.61 on Monday, DOT’s decline indicates declining investor interest despite the altcoin registering a significant spike just last week.

Polkadot (DOT) Close To Giving Up Previous Week’s Gains

Polkadot (DOT) saw a relatively strong uptick towards the end of the previous week despite registering a significant drop on Thursday, which took the price below the 20 and 50-day SMAs to $4.19 after a drop of just over 3%. Despite the drop, DOT registered a strong recovery on Friday, pushing back above the 20 and 50-day SMAs to $4.30 after an increase of 2.63%. Bullish sentiment intensified over the weekend as DOT rose by 3.26% on Saturday and settled at $4.44. Sellers attempted to drag DOT back towards the 50-day SMA on Sunday. As a result, DOT dropped to a day low of $4.36 before making a strong recovery. As buyers overwhelmed sellers at lower levels, DOT rose by almost 3%, going past $4.50, a crucial level of resistance, and settled at $4.57.

Source: TradingView

However, it could not push above $4.60 as buyers lost momentum. As a result, DOT fell back into the red on Monday, registering a substantial drop of 4.38% to slip back below $4.50 and settle at $4.37. Buyers attempted a recovery on Tuesday as DOT rose to a day high of $4.43 before sellers took control once again, pushing DOT down by 1.14% to $4.32, with DOT settling just above the 50-day SMA.

However, the current session has seen DOT slip below the 20 and 50-day SMAs as sellers continue to drag the price lower. DOT is currently down over 2% and trading around the $4.23 mark. If sellers continue to control the session, we could see DOT drop to $4, which could attract buyers, before we see a recovery.

Could Polkadot (DOT) Slip Below $4?

Polkadot (DOT) has spent most of the current week in the red, with its price down almost 4% in the past 30 days. The DOT price chart also suggests it could be entering another consolidation phase. DOT’s trading volume has also registered a jump of almost 65% over the past 24 hours, suggesting profit booking among investors. If sentiment remains bearish, DOT could slip below $4. In such a scenario, we could see the price slip to its multi-year support of $3.62. However, despite DOT’s bearish price action, some analysts remain bullish, noting that DOT is consolidating between $4 and $5, and a potential breakout is on the horizon.

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