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- 1 Polkadot recently announced partnership with Stellar to increase liquidity.
- 2 Technical indicators of DOT are favoring downside momentum. It has seen a drop of 1.77% in the intraday session.
Polkadot is a next-generation blockchain which uses sharding and facilitates crosschain transfer of various data sets and assets. Polkadot is designed to facilitate seamless interoperability between different ecosystems. It was developed by the Web3 Foundation. It was founded by Dr Gavin Wood. It can support multiple parallel chains which have unique features and characteristics. Polkadot has a sharded multichain network which gives it immense capacity in terms of scalability. The Polkadot main network has an average blocktime of 12s. DOT is also called 0 layer metaprotocol as it defines the format of layer 1 blockchains also called Para Chains.
On March 28, Polkadot announced a major partnership with stellar. The parntersip aims to increase liquidity and establish connection through the Space Walk bridge. It is also expected to increase the transaction speed of the network.
DOT has a market cap of $7.2 billion with a market dominance of 0.17%. DOT has an ROI of 122%. Volume of the asset price declined by 6% in the intraday session. The Volume to market cap ratio of DOT indicates a consolidation phase in the price movement.
DOT Bears Are Tightening Their Grip
Polkadot price action shows a prolonged tussle between the bulls and bears. It is currently down by more than 50% from its 90-day high. It is currently trading near the $6.2 level with a small drop in the intraday session. DOT has been forming strong bearish candle in the daily chart. The downside trend of Polkadot can see a halt near $5.25. Meanwhile, the resistance for the upside trend can be seen near $8. DOT has seen a negative crossover in the 50 DMA and could produce a downrend anytime. Also, the 100 DMA is near the $6 level which can act as a threshold for the price,
The RSI for DOT is near 50 with a downward slope. The overall momentum of RSI depicts a consolidated trend in price.
Conclusion
Late March, Polkadot partnered with Stellar to enhance their liquidity. DOT price action recently produced a negative crossover. The price is below the 50 day MA and right above the 100 day MA.
Technical Levels
Major Support:$5.5
Major Resistance:$8
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
