On December 7, the trading price of Polkadot (DOT) managed to surge higher, marking an initiation of a new bullish trend.
The price of DOT kept surging and it was coming close to a higher trading level. The bulls were confirmed that they will be able to break through $5.40, the 20-day EMA.
What the bulls did not know was that the bears were not going to give up so easily. They were ready to meet them close to the particular moving average level.
DOT Failed to Cross $5.40
As the bulls came close to the mentioned level, they also attempted to increase their buying pressure. They tried hard to push DOT above the $5.40 level but things failed to go in their favor.
Despite the bullish attempts and strong buying momentum, the bulls failed to cross the level. The bears had been countering the attempts made by the bulls with a stronger response.
Every rally that the bulls formed was intercepted by the bears and they pushed them back with stronger selling sentiments. As a result, the trading price of DOT kept moving to lower levels.
This also confirms that the sentiments of the majority of the investors are still residing in the negative territory. The bulls will have to spend a lot of energy and money in order to form a stronger rally.
If they manage to do it, then the trading price of DOT may get pushed higher. For now, the selling sentiments of the bears are high and they are ready to match every buying rally with a selling spree.
DOT Price may dip to $4
Although the battle went on between the buyers and the sellers at the 20-day EMA from December 7 to December 10, it was the bears who prevailed.
On December 11, the trading price of DOT started to move lower. Once again, the bears were able to demonstrate their strong selling sentiments by pulling DOT lower.
As of now, the trading price of DOT has moved much lower than the $5.40 mark, leaving the uptrend line. The price chart shows that the trading price of DOT is on the track to hit a low price of $5 (critical support).
On December 12, the bears did increase their selling pressure to pull DOT below the support level but the bulls proved resilient at this mark. They defended it with strong sentiments but it may not continue for long.
If we look at the technical indicators, it is confirmed that DOT is moving in the anticipated zone. The bears are in the mood of selling DOT with stronger momentum.
If they continue with that, then the trading price of DOT may get pulled to $4.