Polkadot (DOT) is witnessing considerable volatility this week as it struggles to build momentum and push above the 20 and 50-day SMAs.
DOT registered a significant decline last week after failing to consolidate above $4.50, as sellers dropped the price to an intra-day low of $3.83 on Friday.
Polkadot (DOT) Registers Sharp Fall
Polkadot (DOT) spent last week firmly in the red after failing to stay above $4.50 despite reaching $4.57 on Sunday. As buyers lost momentum in the face of growing selling pressure, DOT dropped 4.38% on Monday, falling to $4.37. Buyers attempted a recovery on Tuesday but could not sustain momentum, allowing sellers to lower the price by 1.14% to $4.32. Bearish sentiment intensified on Wednesday as DOT slipped below the 20 and 50-day SMAs to a low of $4.10. However, it recovered from this level and settled at $4.21, a decline of 2.55%.
Source: TradingView
Volatility increased on Thursday as buyers attempted to push back above the 20-day SMA, but could not. Sellers also attempted to drag DOT below $4.20 before it settled at $4.21. Bearish sentiment saw a significant increase on Friday as DOT plummeted below $4, after a drop of over 5%, falling to an intra-day low of $3.83 before recovering and settling at $3.99.
Polkadot (DOT) Finds Support Yet Again
As we’ve seen previously, Polkadot (DOT) has strong support at $4 and $3.62. Not surprisingly, DOT’s collapse below $4 saw buyers enter the market and prop up the price. As a result, DOT recovered over the weekend, rising by 1% on Saturday to push back above $4 and settle at $4.03. Bullish sentiment picked up on Sunday as DOT registered an increase of 2.48% and moved to $4.13, with investors hoping for another push towards $4.50.
A Significant Jump In Volatility
However, a sustained rally failed to materialize as DOT encountered substantial volatility on Monday as buyers and sellers sought to establish control. As a result, DOT rose to an intra-day high of $4.22, and fell to an intra-day low of $4, before settling at $4.13. The current session sees volatility persist as buyers struggle to push above the 20 and 50-day SMAs. DOT is currently marginally up, trading around the $4.14 mark.
If buyers regain momentum and push above the moving averages, we could see another push towards $4.50. However, if sellers take over, we can expect DOT to drop back to $4, after which we could see another rebound.
Analysts Still Hopeful
DOT’s resilience after registering a substantial drop suggests it still retains strong support at $4 and $3.62. Despite its price struggles, analysts remain hopeful of an imminent breakout that could see DOT surge past $5. The recent implementation of Polkadot 2.0 and the Join Accumulate Machine (JAM) protocol represent significant milestones that improve the scalability and interoperability of the Polkadot ecosystem.
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.
Source: https://cryptodaily.co.uk/2024/10/polkadot-price-analysis-10-29-dot-struggles-as-volatility-increases-price-uncertainty