Polkadot (DOT) made a strong recovery on Wednesday, registering an increase of $5.61% and rising to $6.73 after its crucial support level held yet again.
Polkadot (DOT) has faced considerable selling pressure over the past few days, with sellers dominating the market and pushing the price from $7.26 to as low as $6.01.
Polkadot (DOT) Registers Near 6% Increase
Polkadot (DOT) has been range-bound since the middle of April and has been facing considerable selling pressure since it reached $7.26 on Wednesday (June 5th). As we can see from the price chart, DOT faces a strong level of resistance at this level. DOT could not move past this resistance and fell back in the red on Thursday (June 6th), registering a drop of 1.65% to $7.14. Selling pressure intensified on Friday (June 7th), as DOT dropped as low as $6.01 before making a recovery and settling at $6.66, a drop of almost 7%. DOT continued to drop on Saturday (June 8th), falling by 4.20% to $6.38.
DOT has had a strong level of support in this zone and was able to register an uptick of 2.35%, rising to $6.53 on Sunday and ending the previous week on a positive note. However, the current week saw DOT back in the red, registering a marginal drop on Monday. It continued its downward trajectory on Tuesday, dropping by 2% to $6.37. However, DOT was able to make a strong recovery once again from this level, registering an increase of almost 6% and rising to $6.74. The current session sees sellers back in control, with the price down by 3.26% at the time of writing.
Sideways Consolidation For Polkadot (DOT)?
Looking at the Polkadot (DOT) price chart, we can see that DOT faces considerable selling pressure at $7 and $7.50. The asset’s current price is around its support zone, an area that has significant demand. As a result, the bearish momentum drops significantly when DOT drops to this level. The current session sees buyers and sellers struggling to control the market. However, DOT’s recent price movements indicate that buyers could dominate sellers should DOT drop to its support level once again.
Source: TradingView
It’s crucial to keep an eye on DOT’s support and resistance levels, as they play a significant role in any significant price movement. If DOT’s support level is unexpectedly broken, we could see the price drop to as low as $6. However, if DOT is able to recover, we could see it reclaim the $7 zone. For now, we could see a period of sideways consolidation before any major movement in either direction.
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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