Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The Polkadot (DOT) price faced significant resistance at $7.60, following which it declined considerably to below the $7 level over the next few sessions.
Polkadot (DOT) had seen a bullish few days, during which the price jumped from its support level of $6.40 to $7.50, but sellers seemed to have reversed the trend.
Can Polkadot (DOT) Hold Above $7
Polkadot (DOT) came across significant selling pressure at $7.60, leading to the price registering a considerable decline. Currently, DOT is confined within a range marked by the resistance at $7.60, which is also where the 200-day SMA is currently located, and the support at $6.40. DOT saw a rejection at this level on May 21, with the price dropping to $7.20 by the 23rd after slipping below the 200-day SMA. However, it found support at the 50-day SMA, registering a 0.69% increase on the 24th after a highly volatile session. DOT continued its upward momentum on the 25th, moving to $7.42, bringing it to the upper limit of its price range.
Buyers retained control on the 26th as DOT continued its upward trajectory and moved past the 200-day SMA to $7.55. DOT began the current week with yet another volatile session that saw the price reach a high of $7.78 and a low of $7.37 before recovering and settling at $7.63. However, it could not move past this level and saw a significant drop on Tuesday, falling below the 200-day SMA and settling at $7.36. Wednesday saw buyers try to regain control as DOT rose to $7.56, but it was unable to go beyond the 200-day SMA as sellers regained control and pushed the price down to $7.17. DOT remained bearish on Thursday and Friday, slipping below $7 to $6.97.
After retracing to this level, DOT has managed to reverse the bearish trend during the ongoing session after finding support at the $7 level. Currently, the price is up by 1% and is trading at $7.04.
Another Decline For Polkadot (DOT)?
As we can see from the Polkadot (DOT) price chart, the asset is currently confined within a decisive range, the upper end of which sits at $7.60, while the lower end sits at the $6.40 support level. Any significant price movement would require DOT to move beyond these price levels. Currently, DOT is trading just above the $7 mark. Should buyers retake control of the current session, we could see DOT move to $7.20 and then to $7.50, where the 200-day SMA could act as resistance.
Source: TradingView
However, if sellers push DOT below $7, it could drop to its support level of $6.40. To summarize, DOT stands at a critical point. A failure to stay above its current support levels could cause DOT to register significant declines. If the price stays above $7, we could see some sideways consolidation before yet another potential recovery, but whether DOT can break out of its current price range remains to be seen.
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.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.