POLKADOT Price Analysis 10-4: DOT Bounces Off Support Level As Markets Recover
Polkadot (DOT) is up over 1% in the past 24 hours, rebounding after dropping to a day low of $3.99 on Thursday. In the current session, DOT is up by 0.50% and trading around the $4.15 level.
Almost all altcoins, including DOT, had given up their gains after a highly bearish week for markets following escalating tensions in the Middle East, which spread panic among investors.
Polkadot (DOT) Rebounds From Support Level
Polkadot (DOT) has spent almost all of the current week in the red after failing to push above $5 last Friday. Thanks to intense selling pressure, DOT turned bearish over the weekend, dropping by 2,04% on Saturday and 0.42% on Sunday to end the weekend on a bearish note. The current week began with selling pressure increasing substantially, leading to DOT dropping almost 7% to $4.44. Buyers attempted a recovery on Tuesday as DOT rose to a day high of $4.57. However, with the markets turning bearish, DOT’s recovery was halted as it fell by 6.31% to slip below the 20 and 50-day SMAs to $4.16.
Source: TradingView
Wednesday saw volatility pick up as sellers attempted to drive DOT below $4 while buyers attempted a recovery and a move back above $4.50. In the end, sellers gained the upper hand, and DOT fell by 1.44% to $4.10. DOT slipped below $4 on Thursday, falling to a day low of $3.99. However, $4 is a level at which DOT has strong support. As a result, DOT recovered as buyers countered the selling pressure, with the price eventually registering an increase of 0.73% to push up to $4.13. The current session sees DOT marginally up, trading around the $4.15 mark.
Can Polkadot (DOT) Push To $5?
DOT’s recovery currently depends on the overall market situation. With the Middle East crisis adversely impacting the traditional and crypto markets, it remains to be seen if this recovery can be sustained. Buyers could lose momentum, and DOT could drop back to $4. A break below $4 is unlikely due to DOT’s strong support at this level. However, should the price fall below $4, it will find support at $3.62.
Should buyers continue to control the session, DOT must first push above $4.50. A break above this level could push DOT back up to $5.
Polkadot’s On-Chain Metrics
The number of new users on Polkadot has remained relatively steady over the past year. However, the number of active users has registered an increase of 25%. DOT’s daily trading volume has also significantly jumped, indicating that the network is processing large transfers. Analysts are of the opinion that DOT is approaching the end of its accumulation phase and could be on the verge of an imminent breakout. One analyst stated,
“Starting with the @Polkadot, I’ll share some technical analysis with you, highlighting assets with massive potential in the coming weeks. $DOT is approaching the end of its yearly accumulation phase and is poised to break out of a long-awaited descending triangle pattern. We’ve witnessed significant movements in large caps over the past few weeks. It’s only a matter of time before $DOT takes off.”
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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