Polkadot Price Down By 13.57% – Time to buy DOT?

This may be the best time to buy DOT despite the massive dip in the crypto market. Bitcoin is seeing resistance at the $69,050 mark, the premier digital asset has shed most of its gains and is now trading within the $60 and $61K range.

The dip in the crypto space affected popular alternative currencies (altcoins) like Polkadot which have had their gains eroded by the ripple effect in the market.

However, the protocol’s current pivot to a highly optimised, the scalable network has seen interests remain on the project. This dip is an ideal opportunity to buy DOT, which had previously hit an all-time high (ATH) of $55 earlier on in the month.

The technical and fundamental performances of the Polkadot project well indicate if this is a good time to buy DOT and rise with the market.

DOT: Plummeting Significantly In Value

The crypto market caught some tailwinds earlier this month after Bitcoin surged more than 15%, following a series of strong fundamental news.

This swayed the nascent industry just north of $3 trillion. At the moment of writing, the crypto market has lost 9.81% in value and trades at $2.59 trillion in total value locked (TVL) following a drop in buying activities.

Polkadot, much like others, has been impacted negatively by a significant decrease in value. At press time, governance token DOT is down 13.57% and is trading at $41.95 in the past day. Weekly gains have also slipped into the red zone, and the popular Ethereum rival is currently down 23.70% in a market landscape that has posted tame results.

However, this has not affected its position on the crypto ranking chart as the asset is still in the eighth position with over $44 billion in a fully diluted market cap. This leaves DOT with a 1.65% market dominance and a $2.52 billion 24-hour trading volume which is high at 150.83% despite the massive dip.

Nonetheless, Polkadot is only tracking the broader crypto market outlook and should be back to winning ways once the atmosphere turns bullish. This makes this an ideal opportunity to buy DOT and rise with the market.

DOT Technical And Fundamental Analysis

With the broader crypto market under bearish control, Polkadot has struggled to break out. At press time, the digital asset is trading below the 20-day moving average (MA) support price of $48.22, reflecting a massive downtrend in its price value.

However, the governance token is on a bullish stretch in the 200-day MA as the indicator price shows that DOT is trading above its support level of $28.73.

This long-term bullish tendency does not seem to have much impact on DOT’s 14-day relative strength index (RSI), which is currently nosediving towards the oversold level at 39.92.

The moving average convergence and divergence (MACD) also show a massive dip as the orange indicator rises above the green trendline. This shows a strong sell signal in the DOT market.

However, Polkadot’s poor technical performance is not a clear reflection of the project’s potential. Currently, the Polkadot blockchain is at a pivotal point in its development as it is currently working on its parachain auctions.

So far, multiple projects are vying for a spot on the heterogeneous network and Acala Network currently leads the ranks of hopefuls. The decentralised finance (DeFi) platform has raised over $1.270 billion with Moonbeam following hotly at $1.269 billion worth in DOT.

Interest is also picking up in the Polkadot protocol. According to a weekly report by blockchain company CoinShares, Bitcoin investment inflows represented 64.6% of the $150.9 million that entered the crypto market in the past week.

Ethereum, Polkadot, and Solana also took a share of the pie, with the heterogeneous network seeing $5.2 million in institutional investments coming into its protocol.

With so much potential yet to be unlocked on the Polkadot protocol, this might be a great time to buy DOT for long term returns.

 

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