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Polkadot (DOT) saw a sharp decline this week as sellers pushed the price down to $6.02. However, strong demand from lower levels kept the price above $6, which is a key support level.
Despite the bounce on Friday, buyers were unable to propel DOT above the $6.50 resistance level, with sellers actively defending that level.
Polkadot (DOT) Struggles to Climb Above $6.50
Polkadot (DOT) has had an interesting week, with a sharp price surge followed by a significant drop. The cryptocurrency is up 4% in the last 24 hours, rebounding after several days of losses. DOT has been in a constant battle between buyers and sellers throughout the week, with buyers trying to push the price above $6.50 and sellers trying to push it below the crucial $6 support level.
DOT fell below its 20-day SMA on July 11 after buyers failed to consolidate above $6. This resulted in a price drop to $5.90. However, DOT bounced back the next day, rising 3.56% to move back above its 20-day SMA and settle at $6.11. Buyers maintained control throughout the weekend, with DOT up 1.96% on Saturday and 1.44% on Sunday, ending the weekend at $6.32, just below its 50-day SMA.
DOT rose 2.69% on Monday to $6.49, breaking above its 50-day SMA. However, despite the bullish sentiment over the past few sessions, it was unable to break above $6.50, a level heavily defended by sellers. As a result of this strong selling pressure, DOT fell back into the red on Tuesday, hitting an intraday low of $6.14. However, with the 20-day SMA acting as a dynamic support level, DOT recovered to settle at $6.34, down 2.34%. Buyers made another attempt to break above $6.50 on Wednesday, reaching a high of $6.53. However, the bulls were unable to maintain momentum, and sellers pushed DOT below its 50-day SMA to $6.26.
Source: TradingView
DOT continued its decline on Thursday, falling to $6.09. Despite strong selling pressure, DOT managed to stay above the important $6 level thanks to strong demand at lower levels. DOT reversed its bearish sentiment on Friday, surging 4.27% to push back above its 50-day SMA to $6.35.
What's Next for Polkadot (DOT)
In the current session, buyers and sellers are trying to establish control. DOT has been trading mostly between $5.50 and $6.50 since mid-June. This indicates strong demand at support levels and sellers dominate at higher levels. For a significant upside price move, DOT needs to push above $6.50. If it can do so and consolidate above this level, it could push up to $7. However, sellers are expected to defend the resistance level.
Or if DOT turns to the downside, we could see a drop to $6, where buyers are expected to support the price. If this level breaks, we could see a significant drop to $5.
There's a lot going on at Polkadot
Polkadot (DOT) highlighted several key developments in its June 2024 report. The report discussed several key updates to the Alpha Program and parachains, as well as new features for the Generic Ledger app. It also mentioned a significant increase in the use of Snowbridge, the Polkadot-Ethereum bridge that was released a month ago. Another important update in the June 2024 report was about the OpenZeppelin team, which recently completed the development of a feature-rich EVM Parachain Runtime template that will be published after an audit.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.
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