Polkadot (DOT) has fallen back into the red during the current session, failing to rise above the $5 level once again, as selling pressure pushed the price lower.
DOT stock is currently down about 2% and trading at $4.80, with sellers controlling it at the moment.
A bridge too far
Polkadot (DOT) has pulled back after strong selling pressure at $5 evaporated bullish sentiment as bears took control. Polkadot has been very bullish this week, with market watchers expecting a rally to $5.10. The altcoin started the week with a strong push above the 50-day SMA, recording a 3.48% increase and settling at $4.46. Polkadot continued its rally on Tuesday, breaking the crucial $4.50 price level and settling at $4.64 after recording a 4.04% increase. With Polkadot moving above a crucial resistance level, volatility increased on Wednesday as sellers tried to push the price below $4.50. However, buyers managed to counter the selling pressure, ensuring that Polkadot did not drop below $4.64.
Source: TradingView
Buying activity picked up again on Thursday as bulls took control of the market, pushing DOT stock up 3.66% to $4.81, with market watchers expecting a breakout above $5 at this point. DOT stock tested the $5 resistance on Friday as it rose to a daily high of $4.96. However, it failed to rally and eventually settled at $4.89 after posting a 1.89% gain. However, it dropped back into the red during the current session after sellers thwarted a push above $5. With buyers losing momentum, DOT stock slipped into the red and is currently down around 2%, trading around the $4.80 level.
Can Polkadot (DOT) Stock Break $5?
Polkadot (DOT) has been showing several bullish signals on its price chart and looks like it is ready to break out of a falling wedge pattern. Polkadotâs RSI is also showing a bullish divergence between its price and the RSI, with the price making lower lows and the RSI making higher lows. If Polkadot breaks out of this pattern, analysts are expecting a massive jump, which could push the price towards $6 or even $6.50.
A break above the $5 level would signal a decisive reversal in the current downtrend. However, with DOT falling from the $5 level during the current session, investors are likely to adopt a wait-and-see approach before deciding on their next move.
Polkadot Sports Collaborations
Polkadot (DOT) has also partnered with the Inter Miami CF in a bid to gain exposure and raise awareness for its chain. The partnership will see the Polkadot logo featured on Inter Miamiâs training kit. This will also allow the protocol to connect with football fans and give them a glimpse into Polkadotâs potential, as well as the use of Web3 in sports. Polkadotâs approach has seen the protocol look beyond the crypto ecosystem to form partnerships and expand into new industries.
