Polkadot had yet another tumultuous week. $DOT dropped below its critical support on Friday after the price dropped to $3.82. Since reaching its low, $DOT climbed back above $4. Can the price, however, manage to hold its position?
After yet another volatile week, Polkadot ($DOT) is again trading above its $4 support after sellers dragged the price down to $3.82 on Friday.
$DOT Loses Ground
$DOT has recently struggled to maintain its support levels and lost the $5 price level at the beginning of August. After dropping to its multi-year support level of $3.62, $DOT recovered and appeared well on its way back to $5. $DOT briefly broke through the $5 level, reaching a high of $5.11 on August 24, before slipping to trade in the $4 range, eventually reaching a low of $3.82 on Friday.
Polkadot ended the previous week just above $4, closing the session at $4.07. However, demand for $DOT at lower prices allowed the price to rebound on Monday, as $DOT registered an increase of 3.44%, rising to $4.21. Buyers were, however, unable to maintain the upward momentum as sellers ultimately took control of Tuesday’s session, driving the price down 3.33% to $4.07. Intense pressure from sellers on Wednesday pushed $DOT down to $3.88. Still, sustained demand for $DOT at these levels countered the downward trend, allowing $DOT to make a quick recovery and eventually close the session at $4.11. Buyers could not maintain the trend, and $DOT dropped 2.19% to $4.02 on Thursday.
Sellers again controlled the session on Friday as the price plunged below $4 to a low of $3.82. Buyers could counter the selling pressure but not push the price above $4. $DOT closed Friday’s session below its crucial $4 at $3.96.
Saturday saw $DOT back above $4, closing the session at $4.07.
The current session sees $DOT trade at $4.12.
Where Does $DOT Go From Here?
$DOT sees strong support at $4, which has been tested twice during the week. Buyers were able to push the price up to defend the support. Despite its strong support at $4, if it is breached, it may result in $DOT falling to its $3.62 multi-year support.
$DOT is, however, consolidating above $4, and if buyers can build on the upward momentum, it could push $DOT above its 20-day SMA and $4.50.
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/2024/09/polkadot-price-analysis-dot-holds-above-4-can-it-stay-there