POLKADOT Price Analysis 11-8: DOT Eyes $4.50 As Bullish Sentiment Returns
Polkadot (DOT) is up almost 4% during the current session, as bullish sentiment returns to the market following Donald Trumps decisive victory in the US presidential elections.
A resurgent DOT has reclaimed key levels after dropping below $4, and plummeting to an intraday low of $3.65 on Sunday.
Polkadots (DOT) Sharp Decline
Polkadot turned bearish last Thursday after a failed attempt to push above the 20-day SMA and dropped almost 6% to slip below $4 and settle at $3.95. Despite buyers attempting a recovery on Friday, sellers pushed DOT lower, as it fell to $3.91, a drop of 1.01%. Sellers retained control over the weekend as DOT registered a marginal decline on Saturday and settled at $4.90. Bearish sentiment intensified on Sunday as DOT plummeted to an intraday low of $3.65, bringing DOTs multi-year support of $3.62 into focus. However, DOT recovered from this level and settled at $3.78, ultimately registering a drop of just over 3%.
Source: TradingView
Sellers retained control on Monday after buyers failed to mount a recovery, pushing DOT down by 0.79% to $3.75.
Bullish Sentiment Returns
However, Polkadot (DOT) registered a sharp reversal in fortunes on Tuesday as markets turned bullish. As buyers entered the market, DOT rose almost 3%, reaching a high of $3.92 before settling at $3.86. Bullish sentiment registered a substantial increase on Wednesday as DOT rallied by 6.48% to surge past $4 and settle at $4.11, just below the 20-day SMA, which acted as a dynamic resistance level. DOT briefly dropped to a low of $4.05 on Thursday, but buyers prevented a further decline, pushing DOT up by 1.46% to go past the 20-day SMA and settle at $4.17. The current session sees DOT up over 3%, above the 50-day SMA, and trading at $4.30. As we can see in the price chart, DOT reached an intraday high of $4.39 earlier in the session but has since dropped back to its current levels.
So, where does DOT go from here? As we can see, the RSI and the MACD indicate strong bullish sentiment dominating the markets. Buyers will look to build momentum and push DOT to $4.50. With markets bullish, DOT could potentially go above the resistance at this level and test $5. Some analysts on X have stated in their analysis that DOT is showing signs of consolidation. If DOT breaks out of its current falling wedge pattern, analysts believe it could surge to $10.
Despite the optimism, DOT faces strong resistance at $4.50 and $5. Sellers are expected to defend both levels, and DOT could face an uphill task overcoming the resistance at these levels.
Hyperbridge Launches On Polkadot
Meanwhile, Polkadot reached another milestone after Hyperbridge, the highly anticipated blockchain interoperability protocol, launched on the platform. Hyperbridge launches with native support for Ethereum, Optimism, Base, Arbitrum, BNB Chain, and Gnosis.
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.
Text source: Crypto Daily™
