Polkadot (DOT) has seen a steady increase since the weekend, which has allowed it to reclaim the crucial $4.50 price level. DOT’s gradual uptick has allowed it to go from Thursday’s low of $4.22 to its current price of $4.56.
Analysts are still optimistic about DOT, given iPolkadot’s growing network activity and its role in integrating real-world assets with blockchain technology.
Can Polkadot (DOT) Reclaim $5?
Polkadot (DOT) has been on a steady upward trajectory as its price recovers after hitting a low of $4.22 on Thursday. DOT has been extremely bearish in recent months, losing crucial support levels and falling to a multi-year support level when it tanked to $3.61 on August 5. DOT has been attempting a recovery since and had risen to $4.88 on August 8. However, with demand drying up close to $5, DOT fell back into the red. By Thursday, DOT had dropped to a low of $4.22.
Since then, DOT has gradually picked up, pushing back bearish sentiment and making small but significant gains. DOT registered a marginal increase on Friday after sellers pushed the price down from an intra-day high of $4.38. Despite strong selling pressure, demand picked up, allowing DOT to register an increase of 1.86% on Saturday and move to $4.37. Buyers pushed towards $4.50 on Sunday as DOT reached an intra-day high of $4.53. However, sellers were once again able to push DOT below $4.50. Despite strong selling pressure, DOT managed to end the weekend on a positive note, registering a marginal increase of 0.22% and settling at $4.39.
Source: TradingView
The current week started with DOT continuing its push towards $4.50, rising over 2% to end Monday at $4.48. DOT was finally able to push above $4.50 on Tuesday, rising to an intra-day high of $4.61. However, with the 20-day SMA coming into play and acting as a dynamic resistance level, DOT lost momentum and dropped to $4.52, above the crucial $4.50 level. The current session sees DOT up by 0.88% and trading at $4.56.
Where Does Polkadot (DOT) Go From Here?
DOT is at a crucial point in its recent upward trajectory. Buyers must push DOT above the 20-day SMA for its current momentum to continue. Such a move would signal that buyers have the advantage and that DOT could continue to see its price move upwards. If DOT can push above the moving average, a push to $5 could become a realistic possibility.
But what happens if sellers take control? Should sellers regain control, they will look to push DOT back below $4.50. Continued selling pressure could send DOT back toward $4, although it could stabilize around the $4.25 mark. A strong indicator of the positive sentiment around DOT is the MACD, which has flipped to bullish since the weekend.
Is Polkadot (DOT) On The Verge Of A Breakout?
Some analysts believe DOT is on the verge of a breakout, given it is consolidating within a falling wedge. This suggests a potential bounce, indicating a strong chance of favorable price movements. Polkadot is also seeing considerable on-chain activity with the recent launch of Chain Signatures. Polkadot’s parent entity, the Web3 Foundation, has also made several strategic investments in the crypto 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/2024/08/polkadot-price-analysis-can-steady-demand-help-dot-reclaim-5