Polkadot (DOT) has registered a substantial decline this week, giving up a large chunk of its recent gains and slipping back below $5 on Thursday.
While DOT is up by 3.35% during the current session, it is down almost 7% over the past 24 hours and has spent most of the current week in the red.
Polkadot (DOT) Surges To $5
Polkadot (DOT) went on an epic rally following the US elections, as it raced past the 20, 50, and 200-day SMAs and crucial resistance levels to go above $5. The rally came after DOT fell to a low of $3.65, bringing its multi-year support into focus. DOT’s recovery gathered pace on election day as it reclaimed $4 after rising 6.48% and settling at $4.11. DOT pushed above the 20-day SMA on Thursday and the 50-day SMA on Friday after posting an increase of 3.60% and settling at $4.32.
Source: TradingView
DOT reclaimed the crucial $4.50 level on Saturday after registering an increase of over 7% and settling at $4.62. Bullish sentiment increased substantially on Sunday as DOT surged over 13% to go above $5 and reach an intraday high of $5.48 before declining and settling at $5.24. Sellers attempted to drive DOT below $5 on Monday as the price fell to an intraday low of $4.98. However, DOT recovered from this level to go above the 200-day SMA and settle at $5.71 after an increase of almost 9%.
Bearish Sentiment Returns
However, despite unprecedented bullish sentiment, DOT fell back into the red on Tuesday after failing to reach $6. As buyers lost momentum, sellers took control and drove DOT down by 7.01% as it went below the 200-day SMA and settled at $5.31. Buyers attempted a recovery on Wednesday but were unsuccessful as DOT fell by 4.33% to $5.08. DOT slipped below $5 on Thursday after registering a drop of 6.10% and settling at $4.77. However, the current session sees DOT up by 3.56% as it looks to reclaim $5.
If buyers can retain control and build momentum, DOT could reclaim $5. DOT could then attempt to go above the 200-day SMA and $5.50. On the other hand, if sellers regain control, DOT could drop as low as $4.50.
Polkadot Sees Jump In New Accounts
Polkadot reported a significant jump in new accounts, with the network adding 5000 new accounts in a day, indicating growing interest in the platform. This marks a 150% increase in new accounts, boosting engagement and positive sentiment among investors. Polkadot has witnessed a steady growth in new accounts since mid-October, but the number jumped sharply on November 10, rising from 1000-2000 to over 5000, suggesting a spike in adoption rates.
Polkadot’s rising social dominance comes when its native currency has seen a revival of sorts having pushed above crucial resistance levels.
“The number of new #Polkadot accounts has gone parabolic in the last 3 days. In the last 24 hours, we have had over 5,000 new accounts created on the relay chain alone.”
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/2024/11/polkadot-price-analysis-11-15-dot-slumps-below-5-as-bearish-sentiment-returns