Polkadot (DOT) continues its steady decline as sellers drag the price down below $4.10 after buyers lost momentum. If DOT continues to fall, it could drop to $4 or lower.
DOT has two key support levels: $4 and $3.62. Buyers are expected to defend both levels to prevent further declines.
Polkadot (DOT) continues to fall
Polkadot’s (DOT) impressive recovery stalled on Sept. 27 as it lost momentum after hitting a one-day high of $4.97. As a result, DOT turned bearish and fell sharply last week, breaking below its 20- and 50-day moving averages and the key $4.50 level. By Wednesday, DOT had fallen to as low as $4 as sellers threatened to break the $4 support level. On Thursday, DOT briefly fell below $4, dropping to as low as $3.99 before bouncing back, rising 0.73% to close at $4.13. DOT continued its rally on Friday, rising 1.45% to close at $4.19.
Buyers failed to gain momentum
However, despite bouncing off support, DOT failed to break through $4.50 and instead consolidated around the $4.20 mark. After rising 1.45% on Friday, DOT saw losses again on Saturday, falling 1.19% to $4.14. However, prices recovered somewhat on Sunday, rising 1.21% to $4.19. However, the week started with sellers taking control after buyers’ attempts to push towards $4.50 failed. DOT rose to an all-day high of $4.27 before falling again, down 1.43% to $4.13.
On Tuesday, DOT experienced some volatility as buyers and sellers sought to establish control. Ultimately, sellers gained the upper hand and DOT fell 0.73% to $4.10. On the current trading day, DOT remains in the red as sellers push the price towards $4.
Will Polkadot (DOT) Drop Below $4?
If DOT continues to fall, it could head back to $4. If sellers break this level, DOT could drop to multi-year support at $3.62. The daily chart shows a possible triple bottom formation, which is a bullish pattern that usually leads to rising prices. However, DOT's price action was not exactly bullish after breaking above the falling trendline last week, but quickly fell back below that trendline.
Buyers must keep DOT above $4 to have a chance of rebounding and moving back to $4.50. If DOT manages to break above $4.50, then a move back to $5 is likely to happen soon.
