It was on December 4, 2021, when the price of Polkadot (DOT) came all the way down to $32.21 per DOT. The data from TradingView shows that the $32.21 per DOT figure was the strong support for DOT.
Prior to the plunge, it was considered that the bulls do whatever they could in order to keep the price of DOT above the strong support benchmark. However, the plunge on the 4th of December managed to break down the strong support benchmark.
As a result, DOT’s price plummeted, falling below the $32.21 per DOT figure. After that, DOT’s price continued diving and it was close to hitting the $25 per DOT price. As of now, the $25 per DOT price represents the “critical support” benchmark for DOT.
This is the reason why the investors are doing whatever they can in order to defend the critical support line for DOT. The bulls are making aggressive investments and purchases for DOT in order to push the price of DOT above the $30 per DOT price.
Although it was expected that the buying power of the investors would be higher for DOT, yet it hasn’t proven to be much effective. As a result, DOT hasn’t been able to make much of a rebound in terms of its price. This showed that despite the efforts, the aggression from the bulls wasn’t able to do much for increasing the price of DOT.
So far, the rebounds experienced by DOT were not very strong and demonstrated weak performance since the 4th of December. It goes to show that there is still not much buying power for DOT, which may help increase the price of DOT at higher levels.
Even on December 5, the price of DOT continued falling and even now, the bears are making strong attempts of pulling the price of DOT. According to analysts, the bears are constantly selling DOT to bring the price of DOT below the $25 mark, which is strong support for DOT.
If the bears succeed in dropping the price of DoT below the $25 figure, they may make the attempt of bringing DOT’s price further down. They may make the attempt of bringing DOT down to $22.50. Once below the $22.50 per DOT price, they would make another attempt of bringing it down to $20.
In case the price of DOT manages to make it over the $36 (20-day EMA) price, it would suggest that buyers have increased their buying power.
On the other hand, if the price of DOT ends up turning down, it would prove that the overall trend of DOT is bearish. In such a case, the bulls will have to put in a lot of effort to push their price in the upward direction.