Polkadot (DOT), founded by Ethereum co-founder Gavin Wood, aims to solve the problem of high gas fees for Ethereum.
The Polkadot Network offers a heterogeneous architecture for the exchange and translation of multiple chains in order to connect private chains and consortium chains with public and permissionless networks.
Based on the Polkadot network and its “sister” test network Kusama, a new range of products will be launched this month to build a decentralized network and affordable DeFi.
According to data from StakingRewards, Polkadot is currently the second largest blockchain in terms of stake value, valued at around $ 24,074,650,618. Polkadot’s mortgage quota is 64.96%.
The largest crypto asset is blocked Cardano at $ 28,622,444,193 while the average annual wagering premium (7.27%) is lower than that of DOT. DOT stakeholders could receive a reward of 13.11% each year.
Polkadot hit a new all-time high of $ 49.20 on April 17th. The bulls were unable to maintain their upward momentum. In the past few days, it suffered a huge loss from $ 49.20 to $ 34.33.
If the overall virtual currency market remains sluggish, DOT can follow the broader market and continue its current downtrend and break below the $ 30 mark.
Polkadot (DOT) price analysis
Source: DOT/USD Daily via TradingView
Polkadot (DOT) has suffered enormous losses and the massive sell-off has caused the price to fall 21.66% in the past 7 days.
After the massive sell-off last weekend, the DOT rebounded yesterday and the bulls worked hard to bring yesterday’s price to $ 31.40 to a daily high of $ 36.15. However, the bulls were unable to sustain gains and quickly lost momentum, allowing the bears to control the market.
DOT / USD prices are hovering below the EMA (Exponential Moving Average) band. The MACD index is still in a bearish zone, suggesting that it may continue to sell in the next few days. If the current trend continues, DOT could fall towards its 100-day simple move average of $ 30.75.
The RSI of DOT is $ 40.44, which is lower than the equilibrium point, indicating that the bears are currently dominating the market. If the DOT fails to defend its support point at USD 31.40, the Cryptocurrency can record further losses.
Contrary to this assumption, a rebound in the currency pair from current levels suggests a strong buy on dips. DOT will try to run at a resistance level of $ 36.55 (50 EMA). If the price of the DOT can break above the 20-EMA of $ 38.88, the bulls will try to push the price to a record high of $ 49.20.
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