Polkadot Price Analysis: $DOT Gains 9% to Trade Above $4.50 Support
After weeks of uncertainty and inability to maintain its support at $4.50, Polkadot ($DOT) looks to close the week well in the green. $DOT is up 9% in the seven-day charts, currently trading for $4.53.
Polkadot ($DOT) looks ready to end the weeks trading on a positive note. $DOT is up by 3.31% in the current session and gained over 9% in the past seven days. $DOT has oscillated between the $4 - $5 mark in recent weeks, briefly dipping below $4, hitting a low of $3.82 and briefly gaining above the $5 mark.
A Continuous Battle Between Buyers and Sellers
After spending the previous week in a downward trend and losing its critical $4 level on September 6, dropping to a low of $3.82, $DOT appears to have made a U-turn. After touching the lows on Friday, $DOT registered an impressive recovery over the weekend, ending the previous week above its $4 support at $4.16.
$DOTs recovery continued throughout Monday, with buyers maintaining the momentum for $DOT to register an increase of 2.88%, ending the session at $4.29, just below its 20-day SMA. Buyers also attempted a move above the 20-day SMA on Monday but could not. The 20-day SMA acted as a dynamic resistance level, resulting in buyers losing momentum and $DOT dropping almost 1%, settling at $4.25.
Bearish pressure intensified on Wednesday, resulting in $DOT dropping to a daily low of $4.07. However, consistent demand for $DOT at lower levels allowed $DOT to regain some of its losses. $DOT eventually closed Wednesdays session at $4.19, a 1.41% drop.
Strong Demand Allows Buyers to Take Control
Demand increased on Thursday as buyers entered the market. The increased buying pressure allowed a 2.63% increase and $DOT to push above the 20-day SMA, eventually settling at $4.30. The push beyond the 20-day SMA was significant and signalled that bearish momentum dwindled, and demand increased. $DOTs bullish momentum continued on Friday, and a 3% increase allowed it to consolidate its position above the 20-day SMA, settling at $4.43. Saturdays session saw $DOT momentarily in the red, dropping to $4.35. Buyers, however, stepped in, allowing $DOT to recover, eventually closing the session with a marginal gain, settling at $4.44.
$DOT Faces Strong Resistance at $4.50
$DOT faces strong and immediate resistance at $4.50 and the 50-day SMA. Buyers have maintained control of the current session, successfully pushing $DOT above $4.50. $DOT is currently up by 3.00%, trading at $4.52. Buyers currently have control of the session, and should they maintain this control, $DOT could make a beak to $5.
The question, however, of whether $DOT can continue its upward trajectory remains, but for the moment, buyers have the advantage.
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.
Read more: https://cryptodaily.co.uk/2024/09/polkadot-price-analysis-dot-gains-9-to-trade-above-450-support
Text source: Crypto Daily™
