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- Polkadot ($DOT) struggles after falling below key levels, hovering near $4 support.
- Buyers failed to push $DOT beyond $4.50, with sellers dominating the market.
- Traders watch for a rebound or further decline toward the $3.62 support level.
Polkadot ($DOT) has been struggling to maintain momentum, with buyers facing persistent pressure after a sharp drop. The cryptocurrency’s brief rise in August to $5.11 has since reversed, pushing it back under key levels.
While signs of a rebound are evident, sellers continue to dominate, keeping $DOT near its $4 support zone. Traders are watching for crucial movements, as a potential upward trend could be on the horizon.
$DOT Faces Critical Levels
After hitting $5.11 in late August, $DOT quickly slipped below the 20-day SMA. Buyers attempted to reverse the trend but failed to push $DOT beyond $4.50.
By the first week of September, $DOT had dipped to $4.07, briefly falling to $3.88 before buyers intervened. Now hovering just above $4, the next few days will be critical in determining whether the $4 support will hold or break.
If $DOT drops below this support, we could see it test the $3.62 multi-year support level. However, if the price rebounds and buyers regain control, $DOT may be able to retest higher resistance levels around $4.50.
Traders are eyeing these price points as key indicators of where $DOT might head next.
Potential For an Upward Movement
Despite the struggles, $DOT could still be ready for an upward move. After its recent correction, the price could dip to the 3.822-3.812 range.
Once this correction completes, analysts expect $DOT to push higher, potentially breaking its downtrend. Resistance targets include $4.282, $4.717, and $5.097, which could signal a strong recovery if reached.
Recent news of Polkadot’s partnership with Inter Miami might help spark more interest. The exposure from this collaboration could provide a much-needed boost, making it easier for $DOT to regain lost ground.
Should buyers succeed in pushing the price upwards, $DOT could finally begin to reverse its downward trend. However, if bearish sentiment prevails, a drop to lower levels might be on the horizon.