Polkadot (DOT) is struggling to move past the 20-day SMA as it faces significant selling pressure around $4.20, leading to muted price action.

DOT has been unable to build any meaningful momentum as it continues to face short-term resistance after enduring a significant decline last week that pushed the price below the 20 and 50-day SMAs.

Polkadot (DOT) Continues To Struggle

Despite the broader markets turning bullish, Polkadot (DOT) has struggled, posting a marginal increase in the past 24 hours as it attempts to push above the moving averages. DOT faced considerable selling pressure after failing to stay above $4.50. As a result, it registered a substantial decline, dropping to $4.37 on Monday (October 21). By Wednesday, DOT had slipped below the 20 and 50-day SMAs, falling to an intra-day low of $4.10 before settling at $4.21. The price witnessed significant volatility on Thursday as buyers and sellers struggled to establish control. Ultimately, neither could gain the upper hand, and DOT remained at $4.21.

Source: TradingView

However, bearish sentiment intensified on Friday as DOT plummeted over 5%, dropping to an intra-day low of $3.83 before settling at $3.99. DOT has strong support at $4, and it should be no surprise DOT recovered from this level as buyers entered the market. As a result, DOT registered an increase of 1% on Saturday to push back above $4 and settle at $4.03. DOT continued to go higher on Sunday, registering an increase of 2.48% and settling at $4.13.

However, buyers lost momentum on Monday as DOT faced significant volatility. Buyers attempted to push above the 20-day SMA and reached an intra-day high of $4.22 before losing steam, allowing sellers to assume control. As a result, DOT fell to an intra-day low of $4 before recovering and settling at $4.13. DOT recovered on Tuesday, rising 1.45% to $4.19, but could not push above the 20-day SMA. The current session sees DOT marginally down as buyers struggle to build momentum and sellers look to drive the price towards $4.

Conflicting Outlooks

Polkado kt (DOT) has two key levels of support, the first at $4 and the second at $3.62. Both levels have helped the price recover and should prevent any substantial decline. DOT’s RSI is currently at

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Author: Amara Khatri