Is the Slide on Polkadot DOT/USD a Buying Opportunity?

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  • Polkadot is currently trading at $6.34 with weekly losses over 10%.

  • The interconnectivity blockchain is under pressure from the ongoing cryptocurrency sell-off.

  • Technical charts show more weakness as the price retest support zone.

Polkadot DOT/USD has hit the floor and is currently trading at $6.34. The price represents a loss of 10.85% in the past week. DOT continues to suffer from overall crypto bearish market sentiment. An aggressive Fed and BoE rate hikes are weighing on the token, as are the rest of digital assets.

Equally important is the political instability that is rocking Eastern Europe. A possible escalation of the Russian-Ukraine conflict would be imminent. Russian President Putin has called for a partial mobilization to send more troops to Ukraine.

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At the micro level, Polkadot continues to regularly unveil upgrades to improve the blockchain. There is also a stable performance on his parachains. Polkadot Insider report ranked Moonbeam’s GLMR token as the most traded on the network as of September 20. The parachain had a volume of $12.5 million. Its counterpart, MoonRiver’s MVR token, followed at $6.3 million.

In the past week alone, Polkadot has registered over $77 million in transfer volumes with a daily average of 1,200 new accounts.

More positive fundamentals relate to the platform’s new strike protocol. vDOT liquidity pool strike by Bifrost reported 121,551 minted tokens four days ago. Bifrost Finance is the best parachain on Polkadot and one of the main staking platforms.

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DOT Tests USD 6.3 Support Again

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Source: TradingView

According to the daily chart above, the DOT fell from $8 to slightly above $6 in just ten days. The trend of lower tops and lower tops represents a 25% loss. While the RSI shows some small buys, DOT faces potential consolidation on the 20-day and 50-day MA.

closing thoughts

The slide in DOT is not an ideal buying opportunity at the current level. The logic remains that the price is looking extremely bearish below key levels. DOT is also trading above the oversold zone with an RSI of 38. Above the benchmark, more downward could be seen before a trend reversal occurred.

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