Polkadot (DOT) continued its steady decline as sellers dragged the price below $4.10 after buyers lost momentum. DOT could drop to $4 or lower should its downward trajectory continue.
DOT has two key support levels: $4 and $3.62. Buyers are expected to defend both levels to prevent a further decline.
Polkadot (DOT)’s Decline Continues
Polkadot (DOT)’s impressive recovery stalled on September 27 as it lost momentum after reaching a day high of $4.97. As a result, DOT turned bearish and dropped significantly last week, slipping below the 20 and 50-day SMAs and the crucial $4.50 level. By Wednesday, DOT had dipped to a low of $4 as sellers threatened to overwhelm the $4 support level. DOT briefly slipped below $4 on Thursday, dropping to a low of $3.99 before recovering to register an increase of 0.73% and settle at $4.13. DOT continued to recover on Friday, registering an increase of 1.45% and settling at $4.19.
Buyers Fail To Build Momentum
However, despite rebounding from its support level, DOT has failed to push toward $4.50 and is consolidating around the $4.20 mark. After registering a 1.45% increase on Friday, DOT fell back into the red on Saturday, dropping by 1.19% to $4.14. However, it recovered on Sunday and registered an increase of 1.21% to move to $4.19. However, the current week began with sellers back in control after buyers attempted a failed push towards $4.50. DOT rose to a day high of $4.27 before falling back into the red and registering a drop of 1.43% to $4.13.
Source: TradingView
Tuesday saw DOT experience some volatility as buyers and sellers sought to establish control. Eventually, sellers gained the upper hand, and DOT dropped by 0.73% to $4.10. The current session sees DOT remain in the red as sellers push the price towards $4.
Could Polkadot (DOT) Slip Below $4?
If DOT’s decline continues, it could find itself back at $4. Should sellers overwhelm this level, DOT could drop to its multi-year support of $3.62. The daily chart shows what could be a triple bottom pattern, which is a bullish pattern and typically leads to an upward price movement. However, DOT’s price action has not been entirely bullish after it broke above the descending trendline last week but promptly fell back below it.
Buyers must keep DOT above $4 for any chance of a recovery and a climb back to $4.50. If DOT manages to push above $4.50, then a move back to $5 could be on the horizon.
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.
