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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.