Polkadot is thought to be the blockchain of blockchains.
Native token DOT has been bearish barely above the $6.5 assist.
If DOT breaks beneath $6.5, the value might fall additional to $4.
Polkadot’s native token DOT/USD is buying and selling at 6.73. The value is shut to or at a assist of $6.5, the lowest since January 2021. Although the value recovered to a excessive of $8.45 in current weeks, it has since lacked a bullish impetus. Investors ought to watch $6.5 because it might be a turning level for DOT or begin an additional decline.
Polkadot is described as a “blockchain of blockchains.” It connects blockchains that will in any other case be incompatible with one another. It unlocks worth by permitting information transfers throughout blockchains. In line with the aim, Polkadot launched a cross-chain messaging system in May. The system permits native transfers of tokens throughout parachains. Polkadot’s native token DOT permits staking and governance on the protocol. It can also be obtainable for buying and selling in different exchanges.
Just like different cryptocurrencies, DOT has been extremely unstable. It as soon as traded at a excessive of $56 in November final yr, at the top of the crypto increase. The current crypto weakness signifies that DOT is but to stage an enduring comeback.
DOT dangers one other low if $6.5 assist fails to hold
Source – TradingView
The MACD line closed beneath the shifting common, signaling a bearish transfer for DOT. A RSI exhibits oversold situations, however the value is but to hit the assist. More weakness in the value is predicted as bearish sentiment prevails. A bullish reversal might happen at $6.5. Failure to reverse at the assist would open DOT to additional decline to a assist round $4.
Summary
DOT/USD is bearish approaching a key assist of $6.5. If the value fails to rebound at the assist, the crypto token might proceed to $4. Investors ought to watch $6.5 for value motion. Still, there isn’t a indication the value will go larger at the assist. Buyers needs to be ready for additional draw back.
