Polkadot (DOT) has stalled after hitting resistance at $4.50 and is down about 1% for the current trading day as sellers attempt to push the price below its 20-day SMA.
Despite the decline in the ongoing session, DOT had a positive week, rising 2.34% in the last 24 hours and nearly 9% over the last seven days, and breaking above its 20-day SMA on Thursday.
Polkadot (DOT) faces resistance at $4.50
Polkadot overcame strong selling pressure on Friday to solidify its position above the 20-day SMA. However, it was expected to face resistance at the $4.50 level, where sellers were expected to defend. DOT fell below $4 on Friday (September 6) to a daily low of $3.82 before buyers pushed the price up to $3.96. Thanks to strong support at this level, it recovered $4 the next day, rising 3.28% to settle at $4.09. DOT continued its gains on Sunday, rising 1.96% to settle at $4.17. Sellers tried to take control on Monday, but failed as buyers continued to exert their influence. DOT eventually rose 2.88% to $4.29, settling just below the 20-day SMA.
With the 20-day SMA acting as a dynamic resistance level, DOT fell back into the red on Tuesday, falling about 1% to close at $4.25.
Downward pressure intensifies
Selling pressure intensified on Wednesday as DOT fell to a low of $4.07. Once again, demand picked up from low levels, allowing DOT to recover some of its losses. It eventually closed down 1.41% at $4.19. Demand picked up on Thursday as buyers returned to the market. As bullish sentiment gained momentum, DOT rose 2.63% to break above its 20-day SMA, closing at $4.30. The break above its 20-day SMA was significant, indicating that bears were losing momentum and demand was increasing. Strong bullish sentiment can be measured by the MACD, which turned bullish earlier in the week.
Source: TradingView
DOT continued its uptrend on Friday, solidifying its position above the 20-day SMA, eventually settling at $4.43, up just over 3%. DOT was expected to face strong resistance at $4.50, and as expected, selling pressure increased as it approached this level. DOT is currently down 0.68% as buyers and sellers struggle to establish control.
Can Polkadot (DOT) Recover Its Upward Trajectory?
So what’s next for DOT? DOT faces immediate resistance at $4.50 and the 50-day SMA. If buyers regain control of the session, DOT could test this level. A move above this level could see a drop to $5. On the other hand, sellers will try to push DOT back below the 20-day SMA. However, DOT has strong support at $4 and sellers are losing momentum at lower levels, so we can expect a quick bounce. For now, buyers have the upper hand.
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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