) has faced significant selling pressure this week, erasing much of its recent gains and slipping below the $5 mark. Despite briefly rallying to new highs following the U.S. elections, bearish momentum has returned, challenging DOT's upward trajectory.
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Key Price Levels & Weekly Highlights
1. Recent Highs: DOT surged to $5.48 after a strong post-election rally, recovering from multi-year support at $3.65.
2. Current Price: As of now, DOT is trading at $4.77, marking a 6.10% drop from yesterday but up 3.56% during the current session.
3. Support and Resistance:
Support: Key support at $4.50 remains in focus if sellers persist.
Resistance: Buyers need to reclaim $5.00 and push beyond $5.50 for bullish continuation.
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Technical Indicators
20, 50, and 200-Day SMAs: DOT initially broke through these critical levels during its rally but failed to hold above the 200-day SMA, signaling a bearish reversal.
Bearish Indicators: The inability to sustain gains above $6 suggests a loss of bullish momentum and increased control by sellers.
Fundamental Insights: New Accounts Surge
Polkadot's fundamentals show promising growth:
Spike in New Accounts: The network added over 5,000 new accounts in a single day on November 10, marking a 150% increase and signaling rising adoption.
Social Sentiment: A parabolic rise in accounts reflects increased attention from both retail and institutional investors, which could bolster future price action.
Outlook for DOT
Bullish Scenario: If buyers regain control and maintain momentum, $DOT could reclaim $5.00 and retest the 200-day SMA at $5.50. A sustained move above $5.50 could drive prices toward $6.00 and beyond.
Bearish Scenario: Continued selling pressure might pull $DOT down to $4.50, a critical support level. A break below could lead to further declines.
Conclusion
Polkadot remains at a crossroads, with growing adoption supporting its long-term fundamentals while short-term price action shows weakness. Traders should watch the $5.00 resistance and $4.50 support levels closely for signs of a breakout or breakdown.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always do your own research.
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