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Polkadot (DOT) has been down almost 8% over the past 24 hours as escalating tensions in the Middle East have led to the crypto market crashing, with investors flocking to safe-haven assets.
DOT lost several key support levels and is currently trading around the $4.16 mark, with sellers remaining in control.
Polkadot (DOT) Facing A Difficult Week
The current week for Polkadot (DOT) has been nothing short of a bloodbath, with the altcoin giving up the gains made last week in just three days. DOT had rebounded impressively since dipping to a low of $3.98 on September 18. Towards the end of the previous week, it reached a high of $4.96 before settling at $4.89, as buyers looked to push it past $5. However, $5 proved a bridge too far for DOT, and it could not go above this level. Instead, sellers assumed control over the weekend, and DOT fell by 2.04% on Saturday and 0.42% on Sunday to end the weekend on a bearish note at $4.77.
Source: TradingView
Selling pressure intensified on Monday as DOT crashed by almost 7%, slipping below a critical support level ($4.50) and the 20-day SMA to settle at $4.44. Buyers attempted a recovery on Tuesday, as DOT pushed back above $4.50, reaching a day high of $4.57. However, this was before geopolitical events spooked markets. As a result, DOT turned bearish, dropping by 6.31% to $4.16 and slipping below another key support level ($4.30).
Polkadot (DOT)’s Current Position
Currently, Polkadot (DOT) is still in the red, with the price down by 1.44% at $4.10. Buyers attempted a push back above $4.20 but were thwarted thanks to growing selling pressure. DOT has strong support at $4, and should bears continue to dominate, it could drop to this level, which could attract buyers. Buyers will do their best to prevent a breach of this level. Should this level fall, all eyes will turn to DOT’s multi-year support at $4.62.
Is This A Buying Opportunity?
DOT is down almost 8% over the past 24 hours, with bearish sentiment still holding sway. Analysts believe that DOT is at the end of an accumulation phase and that a breakout is inevitable. They also believe that significant price drops due to geopolitical events don’t have an impact in the long term. DOT is nearing a breakout from a descending triangle pattern and could see a significant price jump in the near future.
“Starting with the @Polkadot, I’ll share some technical analysis with you, highlighting assets with massive potential in the coming weeks. $DOT is approaching the end of its yearly accumulation phase and is poised to break out of a long-awaited descending triangle pattern. We’ve witnessed significant movements in large caps over the past few weeks. It’s only a matter of time before $DOT takes off.”
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.
