Polkadot (DOT) is struggling to recover from its latest downturn. The cryptocurrency has been mostly trading sideways since the middle of last week.
DOT turned bearish on September 27 after failing to push above $5, as sellers seized the initiative and pushed the price down significantly.
Polkadot (DOT)’s Struggles Continue
After falling into the red the previous weekend, Polkadot (DOT) registered a substantial decline last Monday, dropping almost 7% to $4.44. A failed recovery on Tuesday allowed sellers to yank the price lower as DOT slipped below the 20 and 50-day SMAs to $4.16 after a drop of 6.31%. DOT experienced considerable volatility on Wednesday as buyers attempted another recovery while sellers attempted to drag DOT below $4. In the end, sellers pushed the price down by 1.44% to $4.10.
Source: TradingView
DOT slipped below $4 on Thursday but quickly recovered as buyers managed to push DOT to $4.13 after a marginal increase. DOT continued to push higher on Friday, registering an increase of 1.45% to move to $4.19.
Stuck Sideways
Despite recovering from a low of $3.99, buyers could not build momentum and push DOT towards $4.50. Instead, DOT began trading sideways as it registered a drop of 1.19% on Saturday to drop to $4.14 and start the weekend on a bearish note. The price recovered on Sunday, rising by 1.21% and moving to $4.19. DOT attempted to push towards $4.50 on Monday but quickly lost momentum. As a result, sellers took over and pushed DOT down by 1.43% to $4.13. The current session sees DOT marginally down as buyers and sellers struggle to establish control.
Can Polkadot (DOT) Regain Momentum?
Polkadot (DOT) is currently unable to build any momentum that could initiate a significant price action. Thanks to strong support, DOT has remained above $4 as buyers enter the market at lower levels. However, buyers have been unable to push towards $4.50 after DOT’s latest downturn. Buyers must regain control of the current session and go above $4.50 for any chance of a move back to $5 to materialize. On the other hand, sellers will look to drive DOT to $4, a level that will attract buyers once again.
Despite DOT’s recent price struggles, analysts remain convinced the altcoin is on the verge of a significant breakout, with technical indicators pointing at an imminent rally. Polkadot has reported an increase in new users and a 25% jump in active users. Daily trading volume has also registered a noticeable increase. According to analysts, DOT is nearing the end of its accumulation phase and could potentially see a historic breakout.
“With over 600 days below the key zone, Polkadot is gearing up for a major push.”
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.
