Polkadot (DOT) is testing resistance at $6 as bullish momentum builds, sparking optimism among traders that DOT’s upward trajectory will continue.
DOT is up nearly 3% in the past 24 hours and nearly 19% in the past week, recovering after a sharp decline last week.
Polkadot (DOT) Gains Momentum
Polkadot (DOT) has been rising since falling to an intraday low of $3.65 in early November. Since falling to these lows, DOT has staged a stunning recovery, reclaiming $4 (a key support level) and surging past the 20-day and 50-day moving averages following the US election. As of November 10, DOT had recovered $5 after rising more than 13%. DOT gained 8.97% on Monday, breaking above the 200-day moving average, pushing the price to $5.71. However, DOT retreated on Tuesday, falling a whopping 7.01% and falling below its 200-day moving average to close at $5.31. DOT fell further on Wednesday, falling more than 4% to close at $5.08.
source: trading view
On Thursday, DOT fell below $5, with the price down nearly 6%, finally closing at $4.78. Despite heavy selling pressure, DOT gained 7.95% on Friday, recovering $5 to close at $5.16. Bullish sentiment increased on Saturday, with DOT surging over 12%, breaking above the 200-day moving average and closing at $5.78.
Can Polkadot (DOT) break above $6?
Polkadot (DOT) surged above $6 on Sunday to hit an intraday high of $6.14 as buyers attempted to consolidate above $6. However, as sellers were active at this level, DOT retreated, losing more than 6% to end the day at $5.42. With the 200-day moving average acting as dynamic support, DOT rebounded, rising nearly 11% to reach an intraday high of $6.10 before falling and stabilizing at $6. Despite Monday’s gains, DOT fell into the red again on Tuesday as sellers overwhelmed buyers. DOT eventually fell 3.33% to close at $5.80.
DOT has experienced significant volatility in current trading as sellers look to push the price below $5 and buyers look to push the price above $6. Currently, DOT is up nearly 2% and is trading around $5.90.
DOT reports a significant increase in its market capitalization, which now stands at $9 billion. Transaction volume has also grown significantly, now reaching $519 million. The MACD is currently bullish, indicating strong buyer sentiment. The RSI has climbed into overbought territory, which is why a decline is expected. Analysts predict that if DOT can break above $6, DOT may target $10.
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.
