Polkadot (DOT) bulls faced a tough week as their attempt to push the price above the $5 mark fell short. Despite early signs of recovery, sellers quickly reasserted control, leaving the price stuck below a crucial resistance level. Currently, DOT is trading around $4.80, down nearly 2%, with bears holding the upper hand.
Bulls Lose Momentum, Sellers Dominate
Earlier in the week, Polkadot showed promising signs, briefly breaking above its 50-day SMA. On Monday, the price rose by 3.48%, climbing to $4.46. This positive trend continued into Tuesday, with a gain of 4.04%, as DOT reached $4.64. However, midweek volatility saw bears pushing back, trying to drag the price below $4.50. Buyers held the line, and by Thursday, bulls were back, lifting the price to $4.81, a 3.66% increase.
As traders anticipated a potential breakthrough on Friday, DOT surged to $4.96, but the rally lost steam. Sellers took control, and DOT closed the day at $4.89, missing the key $5 level once again.
Can Polkadot Break Free from Bearish Pressure?
Despite the recent dip, technical indicators suggest Polkadot could be gearing up for a reversal. DOT’s price chart shows a potential breakout from a falling wedge pattern, a classic signal for a bullish reversal. Additionally, the Relative Strength Index (RSI) is flashing bullish divergence, with prices hitting lower lows while the RSI makes higher lows—often a sign of an upcoming upward move.
A successful breakout above $5 could see DOT climb toward $6 or $6.50. However, the $5 resistance remains a key obstacle. Investors may stay cautious until a decisive move occurs, as the battle between bulls and bears continues without a clear winner.