Polkadot (DOT) has recovered to reclaim the crucial $5 price level as bullish sentiment returned to the markets, with the altcoin up almost 2% during the ongoing session.
DOT slipped below $5 on Thursday as sellers drove the price to an intraday low of $4.69. However, it recovered from this level, up almost 8% over the past 24 hours.
Polkadot (DOT) Reclaims Key Levels
Polkadot (DOT)’s price action has seen considerable movement since November 5 as it made a strong recovery after dropping below $4 and settling close to its multi-year support at $3.62. DOT recovered strongly and reclaimed $4 on November 6 after registering an increase of 6.48% to settle at $4.11. DOT moved above the 20-day SMA on November 7 after rising 1.46% and settling at $4.17. With bullish sentiment persisting, DOT moved past the 50-day SMA on November 8, rising by 3.60% and settling at $4.32.
Source: TradingView
The weekend saw a substantial uptick in bullish sentiment as DOT registered an increase of 7.18% on Saturday to go above $4.50 and settle at $4.63. Buying activity increased on Sunday as DOT surged over 14% to go above $5 and reach an intraday high of $5.48 before declining and settling at $5.24. DOT fell to a low of $4.98 on Monday as sellers attempted to drive the price below $5. However, DOT recovered from this level to surge past the 200-day SMA and $5.50 to settle at $5.71.
A Quick Decline And Recovery
DOT reached an intraday high of $5.84 as bulls set their sights on $6. However, buyers lost momentum and failed to push above $6, and sellers took control. As a result, DOT fell over 7% to slip back below the 200-day SMA and settle at $5.31. Buyers attempted a recovery on Wednesday but were unsuccessful as sellers pushed DOT down by 4.33% to $5.08. With bearish sentiment persisting on Thursday, DOT fell below $5, falling over 6% and settling at $4.77.
However, DOT rebounded from this level on Friday as it rallied 8.18% to reclaim $5 and settle at $5.16 as buyers returned to the market. The current session sees DOT up by almost 3% as buyers look to push the price above the 200-day SMA. If DOT can go above this level, it could make another attempt to test the resistance at $6. On the other hand, if sellers retake control, DOT could slip below $5 and drop to $4.50. A drop to $4 can be expected if sellers breach this level.
Polkadot (DOT) Showing Renewed Strength
Polkadot (DOT) has shown a resurgence, with bullish trends re-emerging after an extended period of volatility. DOT’s resurgence is being fueled by ongoing technological advancements in the Polkadot ecosystem and growing developer adoption. Polkadot’s focus on interoperability has established it as a leader in cross-chain interoperability. Polkadot’s interoperability has attracted several projects, strengthening the network’s value. Polkadot has also improved scalability, increasing the network’s appeal among users and investors.
Polkadot has also reported a significant jump in new accounts, adding over 5000 new accounts in 24 hours, a 150% increase.
“The number of new #Polkadot accounts has gone parabolic in the last 3 days. In the last 24 hours, we have had over 5,000 new accounts created on the relay chain alone.”
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.