Polkadot (DOT) is struggling to stay above $4 after it fell back into the red on Tuesday, with buyers losing steam as the price approached $4.50.
DOT, which had steadily risen to a high of $5.11 in August, has since lost those gains, as selling pressure forced the price below the 20-day SMA, with buyers struggling to gain a foothold in the face of growing negative sentiment.
Polkadot (DOT) Struggling Once Again
Polkadot (DOT) has primarily been in the red since August 24, when it reached a heady $5.11 before sellers yanked it back down. By the last week of August, DOT dipped below the 20-day SMA and the $4.50 price level, closing at $4.38 on August 27. By Saturday (August 31), DOT had dipped to $4.26, having lost all the gains made during its ascent to $5.11. September began with DOT continuing to drop, registering a drop of 4.46% and falling to $4.07, just above the $4 support level.
Source: TradingView
Buyer interest increased at lower levels, allowing DOT to rebound on Monday. As a result, DOT registered an increase of 3.44% and rose to $4.21. Despite the quick recovery, buyers lost momentum after a failed push to $4.30, allowing sellers to retake control on Tuesday and drive DOT down to $4.07, a decline of 3.33%. The current session sees DOT struggling to stay above $4, with the price down 0.74%. Sellers had dragged the price to a low of $3.88, but buyers prevented a further decline, pushing DOT back above $4 to $4.10. Now, sellers have assumed control again, with DOT trading at $4.04.
A Crucial Moment For DOT
Polkadot (DOT) stands at a crucial point once again, which could have significant repercussions on any future price action. Buyers have been unable to build momentum and push back against the constant selling pressure, leading to DOT trading in a downward trend. However, as we can see in the price chart above, DOT has two crucial levels it must defend. The first support level, under immediate threat of being overwhelmed, is $4. This level has previously held against selling pressure, with DOT successfully rebounding.
Should this level be breached, it would indicate overwhelming bearish sentiment and bring DOT’s multi-year support level, which sits at $3.62, into focus. No doubt, DOT has strong demand at lower levels, but with demand drying up at upper levels, a return to $5 remains unlikely, at least for now. Buyers must ensure DOT stays above $4 and reclaims the $4.50 level, which could hint that sentiment is turning. The MACD, as we can see in the price chart, is currently bearish. The RSI is also well below 50, indicating a bearish sentiment.
New Partnerships
Investors and market watchers hope Polkadot’s latest partnership with Inter Miami could act as a catalyst and boost DOT’s price. The collaboration will see the Inter Miami first team wear the Polkadot logo on their training kit and could give the protocol significant exposure among football fans globally.
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.
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