Polkadot (DOT) Reclaims $4 FollowingImpressive Recovery After the Elections

DOT has struggled in recent weeks and slipped below $4 last week following a substantial decline, as bearish sentiment weighed the price down.

Crypto markets rallied on Wednesday after Republican candidate Donald Trump was declared victorious in the US presidential elections. This news helped Polkadot (DOT) finally reclaim $4 following an impressive recovery.

DOT has struggled in recent weeks and slipped below $4 last week following a substantial decline, as bearish sentiment weighed the price down.

Polkadot (DOT) Registers Sharp Fall

After failing to push above the 20-day SMA during the past few weeks, buyers attempted to go above this level last week but lost momentum, allowing sellers to take over. As a result, DOT registered a substantial drop of almost 6% on Thursday, going below $4 to an intraday low of $3.89 before settling at $3.95. DOT continued to drop on Friday, falling to $3.91 after falling just above 1%.

Sellers retained control on Saturday as DOT registered a marginal drop and settled at $3.90. Bearish sentiment intensified on Sunday as DOT plummeted to an intraday low of $3.65, bringing its multi-year support of $3.62 into focus.

Despite intense selling pressure, DOT recovered from this level and settled at $3.78 after a decline of almost 4%. Sellers retained control on Monday as DOT slipped to $3.75 after a drop of 9.79%.

A Brief Recovery

Despite DOT’s substantial decline, it made a strong recovery on Tuesday as markets turned bullish on the eve of the elections. As a result, DOT surged to an intraday high of $3.92 before declining and settling at $3.86. Bullish sentiment intensified on Wednesday following the election results, and DOT surged by 6.48% to push above $4 and settle at $4.11, just below the 20-day SMA.

However, after reaching an intraday high of $4.20 during the ongoing session, DOT has fallen back and is currently down by almost 1% and trading at $4.07.

Can Polkadot (DOT) Slip Back Below $4?

With DOT’s recovery stalling, investors wonder if it can slip below $4 again. Buyers will try to keep DOT above $4 and build momentum to reclaim crucial levels lost during the previous week. Buyers must push above the 20 and 50-day SMAs to spark a sustained recovery. A move above these levels could see DOT climb to $4.50.

However, if sellers remain in control, DOT could slip below $4 and drop as low as $3.62 before recovering.