Polkadot (DOT) has seen a minor recovery in current trading and is currently up nearly 1.50% as it looks set to break above the moving averages and chart a path back to $4.50.
DOT rose to an all-day high of $4.53 on Tuesday, but retreated after another rejection at that level.
Polkadot (DOT) climbs to $4.50
Polkadot (DOT) bounced off support on Thursday, rising 1.49% to close at $4.08. Sustained buying activity pushed DOT up 2.21% to $4.17 on Friday, continuing its recovery. DOT attempted to push the price towards $4.50 over the weekend, but it quickly rose to an intraday high of $4.26. However, sellers pushed the price down to $4.20, with DOT rising just 0.72%. Despite the good performance, DOT fell into the red again on Sunday as sellers attempted to push the price back to $4. As a result, DOT fell to an all-day low of $4.09 before closing at $4.16, a decrease of 0.95%.
source: trading view
DOT had a bullish start to the week, rising just over 5% on Monday to break above its 20- and 50-day moving averages to close at $4.37. The market was volatile on Tuesday as buyers and sellers tried to take control of the market. Buyers are trying to push DOT above $4.50, while sellers are trying to pull DOT back below the 20- and 50-day moving averages. As a result, DOT fell to a low of $4.30 before rebounding and reaching an intraday high of $4.53. However, DOT retreated after rising 0.92% to close at $4.41 due to strong selling pressure at this level.
Another recession and recovery
Despite a strong start to the week and a test of the $4.50 resistance, buyers lost momentum on Wednesday as sellers took control. Affected by this, DOT fell back 2.04% to $4.25. Market watchers are hopeful of a recovery from this level. Conversely, bearish sentiment intensified on Thursday as sellers continued to dominate, with DOT falling below the 20- and 50-day moving averages to $4.19 after sellers dragged the price down 3.01%. However, DOT has rebounded in the current session, rising 1.43% to trade at $4.25, above the 20-day moving average.
So, can DOT continue its recovery and move back to $4.50, or will it fall again? Currently, buyers will have to push DOT back above the 20-day and 50-day moving averages to achieve the target of a move to $4.50. However, if DOT fails to break above the moving averages, it means buyers are losing momentum and sellers are gaining the upper hand. If sellers regain control of the trading session, we expect DOT to drop to $4. Buying activity may pick up at this level, allowing DOT to rebound.
Disclaimer: This article is for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
