Polkadot (DOT) registered a significant drop of almost 7% on Friday as sellers drove the price below $7, a crucial level for the asset.
DOT dropped to as low as $6.06, slipping below its support levels before staging a recovery and rising to settle at $6.65. The current session sees DOT remain in the red as sellers remain in control.
Polkadot (DOT) Registers Sharp Fall
Just as it looked like Polkadot (DOT) could make a recovery, it registered a sharp decline, putting the asset on a downward trajectory once more. After ending the previous week in the red, DOT rose back above $7 on Saturday, rising to $7.06, before dropping to $6.99 on Sunday. However, DOT started the current week on a positive note, albeit experiencing extremely high levels of volatility. As a result of this volatility, DOT rose to a high of $7.18 before being pushed back to $7. If we look at the price chart, we can see that DOT had strong support at this level thanks to the 50-day SMA.
Tuesday saw DOT register an increase of 2.41%, rising to $7.17, and then to $7.25 on Wednesday after rising by 1.06%. However, with the 20-day SMA acting as resistance at this level, DOT fell back in the red, dropping by 1.57% on Thursday and settling at $7.13. Remember, DOT had support at the $7 level at this point. However, this support level was broken on Friday after DOT plunged by 6.75% and dropped to $6.65, with sellers dominating the market and pushing the price as low as $6.06. However, with buyers entering the market, DOT was able to climb back above its support level of $6.40 and settle at $6.65. The current session sees DOT down by 2.70%, with the price at $6.47.
Can Polkadot (DOT) Stay Above Support Level?
Looking at the Polkadot (DOT) price chart, we can see a sharp decline during the last session. Friday’s sharp fall saw sellers breach the level of support at $7, sending DOT into freefall. DOT eventually settled at $6.65. So, where does DOT go from here? DOT has support at $6.40, a level that has held on three previous occasions. Should this level be breached, we could see DOT drop to $6. If DOT manages to recover, we could witness a return to $7. However, it remains to be seen whether it will be able to go past the resistance at $7.20 and $7.50.
Source: TradingView
Looking at the indicators for DOT, we can see that the MACD has flipped to bearish, indicating that DOT could experience selling pressure and a return of bearish sentiment.
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.
