After a week of downturn, Polkadot (DOT) has finally registered a gain, giving its holders some relief. The cryptocurrency went down $4.69 earlier last week.
Since then it has surged 7% recovering substantially after finding a support level to rally further. Polkadot is likely to break the $6 resistance level to continue with the bullish trend.
When November started DOT was down to $3.65 but soon it made a recovery and went beyond moving averages to reclaim major resistance levels at $5 and $6. The altcoin has experienced bearish sentiments for months but now the market outlook has turned positive. This is due to the Bulls taking control of the price chart in the last few weeks which pushed the DOT price higher.
Polkadot started on its recovery journey earlier last week when the crypto market was having a bullish run. It went down below $5 and then recovered to test the $6 resistance level.
The altcoin surged due to the US election rally which sparked a 9% gain last week as the DOT went past the 200-day simple moving averages to settle at $5.71. Crypto traders tried to make it rally to $6 but were rendered unsuccessful by sellers who took the down 7.01%. Hence, Polkadot slid below the 200-day simple moving average to be at $5.31.
The bearish trends continued on Wednesday last week, making the altcoin drop 4.33% to trade at $5.08. The following day DOT went below the $5 mark as it slumped 6% to trade at $4.78.
Despite the selling pressure, the cryptocurrency recovered on Friday, November 15 to ride to $5.16, reclaiming the $5 resistance level with a 6% surge.
On Saturday, DOT gained further to settle at $5.78 after a 12.02% price rise moving past the 200-day SMA at $5.50. The following day the altcoin rallied to $6.14 as buyers sought to make the price rally taking advantage of the bullish trend.
However, this momentum was soon lost due to active sellers above the $6 resistance level, leading to a 6% decline which caused the DOT to reach $5.42 as the week began.
Later it recovered on Monday due to the 200-day SMA support level which ultimately triggered a 10.70% spike, causing Polkadot to rally to $6.
However, the bullish trend couldn't drive it beyond that level and it went down 4% on November 19, struggling to go above the $6 resistance level which has a selling pressure. The MACD also indicates an ongoing bullish trend where buyers are ready to give ground to sellers. The close-to-overbought zone RSI suggests a short-term decline is likely.
At present, the altcoin has set a support level at $5.40. However, if it goes below the $5 mark, it will settle at $4.50. In case buyers are able to gain control, Polkadot will try to rally to $6.50 after breaking the $6 resistance level.
At the time of writing, DOT was trading at $5.83, down 0.06% in the last 24 hours while its trading volume has declined 27.21% to reach $447.57 million and its market cap stands at $8.87 billion.