What is happening with Polkadot? $DOT shows no signs of a bullish rally with bears engulfing the token completely!

In 2023, the price of Polkadot (DOT) has largely displayed a bearish trend. The price continued to fall from the $4.30 horizontal support level in September.

Polkadot 5-day price chart. Source: Trading View

In June, Polkadot was trading for about $10.37. $DOT fell to $4.2 as a result of the SEC’s legal actions against Binance and Coinbase in June over the alleged sale of unregistered securities. However, Polkadot was able to quickly recover because it wasn’t one among the 13 cryptocurrencies cited in the lawsuit. 

With 100,000 transactions per second, Polkadot has a lot of room for future expansion. It is one of the fastest and most scalable blockchain platforms, making it perfect for global adoption, and it boasts a transaction processing speed of six seconds. Recently, Polkadot announced its partnership with Energy Web, a well-known international non-profit energy firm. Polkadot also managed a partnership with USDC stablecoin issuer Circle

Since reaching a new yearly high of $7.93 in February 2023, the $DOT price has decreased. Below a trendline of declining resistance, the decline was arrested but $DOT has dropped by 50% whenever it reached below this line. 

Since the Polkadot price plummeted from the $4.30 horizontal support zone in September, there has been another negative indication. Since it had offered assistance since the year’s outset, this area was vital. In the event that the price bounces, the area is now anticipated to act as resistance. 

The daily RSI has a negative slant currently. Despite the indicator’s upward movement, it is still below 50, indicating a bearish trend. 

In some more bearish news, the 113M $DOT raised during the initial parachain auctions will become liquid on October 24. The price of $DOT was $25 at the time of the Parachain auctions. It will be interesting to see if hodlers will exit or continue to persist with Polkadot in the long term. A retest of the $3.5 level could be on the cards if hodlers continue to exit the $DOT token and the unlocked tokens are sold quickly. Another unlock event is due on 16 January, 2024.

However, 90% of the $DOT supply is in circulation and Dot 2.0 might induce FOMO leading to a bullish rally in the near future. 

Despite this pessimistic DOT price forecast, the bearish perspective will be invalidated by a breach over the $4.30 region and the descending resistance trendline. Polkadot price could then potentially rise by 40% to the next resistance level at $5.72.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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