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Polkadot is thought to be the blockchain of blockchains.
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Native token DOT has been bearish barely above the $6.5 assist.
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If DOT breaks beneath $6.5, the worth may fall additional to $4.
Polkadot’s native token DOT/USD is buying and selling at 6.73. The worth is shut to or at a assist of $6.5, the lowest since January 2021. Although the worth recovered to a excessive of $8.45 in latest weeks, it has since lacked a bullish impetus. Investors ought to watch $6.5 because it may very well be a turning level for DOT or begin an additional decline.
Polkadot is described as a “blockchain of blockchains.” It connects blockchains that might in any other case be incompatible with one another. It unlocks worth by permitting information transfers throughout blockchains. In line with the purpose, 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 accessible 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 12 months, at the top of the crypto growth. The latest crypto weakness signifies that DOT is but to stage a long-lasting comeback.
DOT dangers one other low if $6.5 assist fails to hold
Source – TradingView
The MACD line closed beneath the transferring common, signaling a bearish transfer for DOT. A RSI exhibits oversold situations, however the worth is but to hit the assist. More weakness in the worth is anticipated as bearish sentiment prevails. A bullish reversal may 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 worth fails to rebound at the assist, the crypto token may proceed to $4. Investors ought to watch $6.5 for worth motion. Still, there isn’t any indication the worth will go increased at the assist. Buyers ought to be ready for additional draw back.
