DOT’s Push Above $5 Falters Once Again: Market Sentiment Turns Cautious as Price Falls
- Polkadot struggles to break $5 resistance as sellers regain control.
- DOT shows bullish signs but faces strong resistance at key levels.
- Investors remain cautious as the battle between bulls and bears continues.
Polkadot (DOT) bulls faced a harsh reality this week as their push toward the $5 mark hit a wall. Sellers yanked the price down once again, as buying momentum evaporated.
After testing the $5 level multiple times, DOT failed to hold its ground, leaving traders with uncertainty. Currently, DOT is down by nearly 2%, trading around $4.80, with the bears firmly in control.
The failure to break through $5 has created a sense of hesitation among investors. Yesterday, DOT showed promising signs of recovery, rallying above $5, key resistance level, as the post below suggests.
$DOT Falling Wedge Upside breakout is Confirmed after long Consolidation..✅
Midterm Target : 9.60$#Crypto #DOT #Polkadot pic.twitter.com/7CsHmCbqMu
— Captain Faibik 🐺 (@CryptoFaibik) September 28, 2024
However, the optimism faded as sellers reasserted their dominance. The question now is whether Polkadot can reignite its bullish momentum or if it’s destined to remain under pressure.
Bulls Lose Steam, Bears Take Over
Earlier in the week, Polkadot surged above its 50-day SMA, signaling a potential breakout. A 3.48% increase on Monday had traders excited, with the price rising to $4.46.
The momentum carried forward into Tuesday, as DOT broke past $4.50, reaching $4.64, a gain of 4.04%. Volatility increased midweek as the bears attempted to push DOT below the $4.50 level. Despite the struggle, buyers managed to hold the line at $4.64.
By Thursday, bulls were back in charge, driving the price up by 3.66%, bringing DOT to $4.81. Hopes were high as market watchers anticipated a move above the critical $5 level on Friday. Polkadot came close, reaching a day high of $4.96, but the rally fizzled. Sellers took the upper hand, and DOT closed at $4.89.
Can Polkadot Break Free from Bearish Grip?
Despite the setback, DOT’s technical indicators are flashing some promising signals. Its price chart shows a potential breakout from a falling wedge pattern, a classic bullish reversal signal.
Moreover, DOT’s Relative Strength Index (RSI) is showing a bullish divergence, with prices hitting lower lows while the RSI makes higher lows. This pattern suggests an impending upward move.
A successful breakout could see Polkadot’s price soar towards $6 or even $6.50. However, the resistance at $5 remains a formidable obstacle.
Investors are likely to adopt a cautious approach, waiting for a decisive move before committing to new positions. Until then, the battle between bulls and bears rages on, with no clear winner in sight.
