Polkadot (DOT) Price Analysis – October 22: Struggling Amidst Market Downturn
Polkadot ($DOT) has faced a sharp decline over the past 24 hours, dropping by around 3.50%, pulling its price below the crucial $4.50 level. Currently trading at $4.41, DOT saw a brief rally over the weekend, reaching as high as $4.59, before losing momentum as buying pressure faded at the start of the week.
Polkadot’s Mixed Performance Throughout Last Week
Last week, Polkadot’s price showed a volatile performance. It kicked off on a high note, surging by 5.05% on Monday, breaking through its 20-day and 50-day Simple Moving Averages (SMAs) and closing at $4.37. However, the positive sentiment didn’t last long as Tuesday brought heightened volatility, with a price swing between $4.30 and $4.53, eventually settling at $4.41, marking a modest 0.92% increase.
The bullish momentum faded by Wednesday, with the token slipping to $4.32, and the bearish trend extended into Thursday. DOT fell below both the 20-day and 50-day SMAs, closing the day at $4.19 after a sharp 3% drop.
Weekend Recovery Offers Temporary Optimism
Despite the mid-week slump, Polkadot made a strong comeback on Friday, climbing back above the key moving averages with a 2.63% rise. This upward momentum continued into the weekend, with DOT advancing by 4.44% on Saturday to close at $4.44. The bullish sentiment persisted on Sunday, pushing the price to $4.57, up 2.93%, sparking hopes that Polkadot might stabilize above the $4.50 resistance level.
Return to Selling Pressure
However, the bullish sentiment was short-lived. Monday saw renewed selling pressure, driving the price down by 4.38% to close at $4.37, again slipping below the critical $4.50 mark. In the current session, DOT has extended its losses, down an additional 0.23%, now trading at $4.36. Sellers made attempts to push the price below the 50-day SMA, but buyers have managed to defend the $4.30 level, prompting a slight recovery.
What Lies Ahead for Polkadot?
Looking forward, Polkadot’s price chart suggests that sellers are striving to push the token below both the 20-day and 50-day SMAs, testing the resilience of buyers who have so far maintained support at these levels. Buyer fatigue near the 50-day SMA is becoming increasingly apparent, which could limit further upward movement.
Should buyers succeed in holding the price above these key technical levels, DOT could make another attempt to break through the $4.50 resistance and potentially climb toward $4.60. This outlook is reinforced by technical indicators like the MACD and RSI, both of which remain in bullish territory. However, if sellers overpower buyers and push the price below the SMAs, Polkadot could face a deeper decline, with $4 serving as the next significant support level.
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