Polkadot (DOT) has recently experienced a significant drop in value, slipping back below $5 over the past week. Despite a 3.35% increase during the current session, it has lost almost 7% in the past 24 hours and has been in the red for most of this week. The cryptocurrency’s recent rally, which saw it surge past the 20, 50, and 200-day Simple Moving Averages (SMAs) and crucial resistance levels, occurred following the US elections.
DOT’s recovery gained momentum as it reclaimed $4 after a rise of 6.48% and settling at $4.11. DOT continued to climb, pushing above the 20-day SMA on Thursday and the 50-day SMA on Friday after recording an increase of 3.60% and settling at $4.32. DOT reclaimed the important $4.50 level on Saturday, registering an increase of over 7% and settling at $4.62.
Sentiment increased significantly on Sunday as DOT rose over 13% to go above $5 and reached an intraday high of $5.48 before declining and settling at $5.24. Despite this, sellers attempted to push DOT below $5 on Monday, but the cryptocurrency recovered, going above the 200-day SMA and settling at $5.71 after an increase of almost 9%.
However, despite the unprecedented bullish sentiment, DOT fell back into the red on Tuesday after failing to reach $6. Buyers lost momentum, allowing sellers to regain control and push DOT down by 7.01% as it went below the 200-day SMA and settled at $5.31. Buyers attempted a recovery on Wednesday, but their efforts were unsuccessful as DOT fell by 4.33% to $5.08.
DOT slipped below $5 on Thursday, registering a drop of 6.10% and settling at $4.77. However, the current session sees DOT up by 3.56% as it looks to reclaim $5. If buyers can maintain control and build momentum, DOT could reclaim $5 and attempt to go above the 200-day SMA and $5.50. Alternatively, if sellers regain control, DOT could drop as low as $4.50.
Polkadot has also seen a significant jump in new accounts, with the network adding 5,000 new accounts in a day, indicating growing interest in the platform. This marks a 150% increase in new accounts, boosting engagement and positive sentiment among investors. Polkadot has witnessed steady growth in new accounts since mid-October but the number jumped sharply on November 10, rising from 1,000-2,000 to over 5,000, suggesting a spike in adoption rates.
