Polkadot (DOT) registered a sharp drop during the week, as sellers pushed the price down to a low of $6.02. However, strong demand at lower levels ensured the price remained above $6, a crucial support level.

Despite rebounding on Friday, buyers have been unable to push DOT past the resistance at $6.50, with sellers actively defending the level.

Polkadot (DOT) Struggling To Push Above $6.50

Polkadot (DOT) has had an interesting week, during which its price rallied and then registered a significant drop. The cryptocurrency has registered a 4% increase during the past 24 hours, rebounding after spending several days in the red. DOT has seen a constant battle between buyers and sellers during the week, with buyers attempting to push the price above $6.50 while sellers attempt to push it below the crucial $6 support level.

DOT had dropped below the 20-day SMA on July 11 after buyers failed to consolidate above $6. As a result, the price dropped to $5.90. However, DOT rebounded the following day, registering an increase of 3.56% to move back above the 20-day SMA and settle at $6.11. Buyers remained in control over the weekend, with DOT rising by 1.96% on Saturday and 1.44% on Sunday to end the week at $6.32, just below the 50-day SMA.

DOT pushed above the 50-day SMA on Monday thanks to a 2.69% increase that saw it move to $6.49. However, despite the bullish sentiment over the past few sessions, it could not push above $6.50, a level which sellers defended vigorously. As a result of this strong selling pressure, DOT fell back into the red on Tuesday, dropping to a day low of $6.14. However, with the 20-day SMA acting as a dynamic level of support, DOT recovered and settled at $6.34, a 2.34% decline. Buyers made another attempt to push above $6.50 on Wednesday, reaching a high of $6.53. However, bulls could not sustain momentum, and sellers were able to drive DOT below the 50-day SMA to $6.26.

Source: TradingView

DOT continued to drop on Thursday, dropping to $6.09. Despite strong selling pressure, DOT could stay above the crucial $6 thanks to strong demand at lower levels. DOT reversed the bearish sentiment on Friday, as it surged by 4.27%, pushing back above the 50-day SMA to $6.35.

What Next For Polkadot (DOT)

The current session sees buyers and sellers attempting to establish control. DOT has been primarily trading between $5.50 and $6.50 since the middle of June. This indicates strong demand at support levels and sellers dominating at higher levels. For any substantial upward price movement, DOT must push above $6.50. If it can do so and consolidate above this level, we could see a push to $7. However, sellers are expected to defend the resistance levels.

Alternatively, should DOT turn bearish, we could see a drop to $6, where buyers are expected to support the price. We could see a significant drop to $5 if this level is breached.

A Lot Happening At Polkadot

Polkadot (DOT) highlighted several key developments in its June 2024 report. The report discussed several major updates on the Alpha Program and parachains, along with new features in the Generic Ledger app. It also noted a significant surge in the use of Snowbridge, a Polkadot-Ethereum bridge launched just under a month ago. Another important update in the June 2024 report was about the OpenZeppelin team, which recently concluded the development of a feature-rich EVM Parachain Runtime template, which will be published after it is audited.

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.