Polkadot (DOT) is facing a challenging time as it struggles to break the $5 resistance level, with sellers regaining control in the market. Despite showing bullish signs, DOT is currently hovering around $4.80, down by nearly 2% as bears maintain a stronghold.
The failure to surpass the $5 mark has left investors cautious, as the battle between bulls and bears continues. A recent attempt by DOT to rally above $5 was short-lived, as sellers quickly regained dominance.
Earlier in the week, Polkadot experienced a surge above its 50-day SMA, prompting optimism among traders. However, the momentum was met with resistance at key levels, leading to increased volatility in the market.
Although the technical indicators for DOT are showing promising signals, such as a potential breakout from a falling wedge pattern and a bullish divergence in the Relative Strength Index (RSI), the $5 resistance level remains a significant challenge for Polkadot.
Investors are advised to exercise caution and wait for a decisive move before making new decisions. The struggle between bulls and bears is ongoing, with the outcome still uncertain.
