Polkadot Price Analysis: DOT Registers Sharp Fall. Can It Stay Above $6.40?



photo 2024 06 08%2021.23.07

Polkadot (DOT) registered a significant drop of almost 7% on Friday as sellers drove the price below $7, a crucial level for the asset.

DOT dropped to as low as $6.06, slipping below its support levels before staging a recovery and rising to settle at $6.65. The current session sees DOT remain in the red as sellers remain in control.

Polkadot (DOT) Registers Sharp Fall

Just as it looked like Polkadot (DOT) could make a recovery, it registered a sharp decline, putting the asset on a downward trajectory once more. After ending the previous week in the red, DOT rose back above $7 on Saturday, rising to $7.06, before dropping to $6.99 on Sunday. However, DOT started the current week on a positive note, albeit experiencing extremely high levels of volatility. As a result of this volatility, DOT rose to a high of $7.18 before being pushed back to $7. If we look at the price chart, we can see that DOT had strong support at this level thanks to the 50-day SMA.

Tuesday saw DOT register an increase of 2.41%, rising to $7.17, and then to $7.25 on Wednesday after rising by 1.06%. However, with the 20-day SMA acting as resistance at this level, DOT fell back in the red, dropping by 1.57% on Thursday and settling at $7.13. Remember, DOT had support at the $7 level at this point. However, this support level was broken on Friday after DOT plunged by 6.75% and dropped to $6.65, with sellers dominating the market and pushing the price as low as $6.06. However, with buyers entering the market, DOT was able to climb back above its support level of $6.40 and settle at $6.65. The current session sees DOT down by 2.70%, with the price at $6.47.

Can Polkadot (DOT) Stay Above Support Level?

Looking at the Polkadot (DOT) price chart, we can see a sharp decline during the last session. Friday’s sharp fall saw sellers breach the level of support at $7, sending DOT into freefall. DOT eventually settled at $6.65. So, where does DOT go from here? DOT has support at $6.40, a level that has held on three previous occasions. Should this level be breached, we could see DOT drop to $6. If DOT manages to recover, we could witness a return to $7. However, it remains to be seen whether it will be able to go past the resistance at $7.20 and $7.50.

Source: TradingView

Looking at the indicators for DOT, we can see that the MACD has flipped to bearish, indicating that DOT could experience selling pressure and a return of bearish sentiment.

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 link

About The Author

Scroll to Top