Post-election, Polkadot (DOT) had an impressive performance, rallying to $4 as the cryptocurrency market rallied following the victory of Republican candidate Donald Trump.
DOT has underperformed in recent weeks as bearish sentiment weighed on the price, falling below $4 after a sharp decline last week.
Polkadot (DOT) drops sharply
Polkadot (DOT) has struggled to break above the 20-day moving average over the past few weeks. Buyers attempted to break above this level last week but lost momentum, allowing sellers to take over. As a result, DOT fell sharply by nearly 6% on Thursday, falling below $4 and hitting an intraday low of $3.89 before closing at $3.95. DOT continued its decline on Friday, falling just over 1% to $3.91. Sellers retained control on Saturday, with DOT recording a slight decline, ending the day at $3.90. Bearish sentiment intensified on Sunday as DOT plunged to an intraday low of $3.65, putting its multi-year support at $3.62 into focus.
source: trading view
Despite heavy selling pressure, DOT bounced back from this level, closing at $3.78 after falling nearly 4%. On Monday, DOT fell to $3.75 after falling 9.79%, with sellers retaining control.
short recovery
Despite DOT’s sharp decline, the stock recovered strongly on Tuesday as the market turned bullish ahead of the election. As a result, DOT surged to an intraday high of $3.92 before falling and settling at $3.86. Bullish sentiment intensified after Wednesday’s election results, with DOT surging 6.48% above $4 to close at $4.11, just below the 20-day moving average. However, after reaching an intraday high of $4.20 during the current trading session, DOT has retreated somewhat and is currently down nearly 1%, trading at $4.07.
Can Polkadot (DOT) drop below $4?
With DOT’s recovery stalled, investors are wondering if it will fall below $4 again. Buyers will try to keep DOT above $4 and build momentum to regain the key levels lost last week. Buyers must break above the 20-day and 50-day moving averages to trigger a sustained recovery. If these levels are exceeded, DOT could rise to $4.50. However, if sellers continue to take control, DOT may drop below $4 and drop to $3.62 before recovering.
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.
