Polkadot (DOT) is struggling to move past the 20-day SMA as it faces significant selling pressure around $4.20, leading to muted price action.
DOT has been unable to build any meaningful momentum as it continues to face short-term resistance after enduring a significant decline last week that pushed the price below the 20 and 50-day SMAs.
Polkadot (DOT) Continues To Struggle
Despite the broader markets turning bullish, Polkadot (DOT) has struggled, posting a marginal increase in the past 24 hours as it attempts to push above the moving averages. DOT faced considerable selling pressure after failing to stay above $4.50. As a result, it registered a substantial decline, dropping to $4.37 on Monday (October 21). By Wednesday, DOT had slipped below the 20 and 50-day SMAs, falling to an intra-day low of $4.10 before settling at $4.21. The price witnessed significant volatility on Thursday as buyers and sellers struggled to establish control. Ultimately, neither could gain the upper hand, and DOT remained at $4.21.
Source: TradingView
However, bearish sentiment intensified on Friday as DOT plummeted over 5%, dropping to an intra-day low of $3.83 before settling at $3.99. DOT has strong support at $4, and it should be no surprise DOT recovered from this level as buyers entered the market. As a result, DOT registered an increase of 1% on Saturday to push back above $4 and settle at $4.03. DOT continued to go higher on Sunday, registering an increase of 2.48% and settling at $4.13.
However, buyers lost momentum on Monday as DOT faced significant volatility. Buyers attempted to push above the 20-day SMA and reached an intra-day high of $4.22 before losing steam, allowing sellers to assume control. As a result, DOT fell to an intra-day low of $4 before recovering and settling at $4.13. DOT recovered on Tuesday, rising 1.45% to $4.19, but could not push above the 20-day SMA. The current session sees DOT marginally down as buyers struggle to build momentum and sellers look to drive the price towards $4.
Conflicting Outlooks
Polkado kt (DOT) has two key levels of support, the first at $4 and the second at $3.62. Both levels have helped the price recover and should prevent any substantial decline. DOT’s RSI is currently at 47, indicating the altcoin is yet to break out of its bearish run and has weak buying pressure. DOT’s MACD is also bearish, indicating that sellers have the upper hand for now.
Analysts have also given conflicting predictions, with some suggesting a breakout in the near term if DOT manages to push above the 20-day SMA and $4.20. However, it faces several levels of resistance that could hinder consistent upward momentum. If DOT can go above $4.50, it could see increased market demand. However, a failure to build momentum could see the price drop back to $4.
Some analysts are still bullish on the long-term prospects of DOT, suggesting a breakout is imminent, with one predicting a 27x increase from current prices. If DOT can break past the descending resistance, it could witness a significant breakout.
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-10-30-dot-struggles-to-build-momentum