Polkadot is a multi-chain network which enables different blockchains to communicate and share information. The unique architecture of the network includes a relay chain and multiple parachains. The relay chain of the Polkadot ecosystem acts as the central hub while coordinating the communication between parachains. This approach allows for scalability, security, and flexibility, which makes it an ideal solution for developers to build dapps or any other blockchains.
The primary objective of the DOT ecosystem is to establish a seamless interoperability layer for the entire blockchain network. The interoperability enables collaboration and the sharing of resources across diverse networks, unlocking new possibilities for innovation. Meanwhile, Polkadot has seen a decline of 17% in the revenue collected by them in the past one month as per Tokenterminal. The annualized fees collected from the ecosystem has also observed a decline. Polkadot ecosystem has been seeing a strong adoption and may see new high in the future.
Polkadot has a market cap of $5.3 Billion and is ranked 13th in the CMC. The social engagement of the DOT has observed a decline in the past 30 days. The V/M ratio of the DOT suggests a consolidated trend in price.
Recovery of DOT Price Begins?
The weekly technician chart of Polkadot hints towards a bearish momentum in price. On the daily chart, it is observing a weak bullish recovery. DOT token price is currently near the value of $4.53 with a small gain in the intraday session. The upside momentum of DOT price can face a resistance in between $5.2 and $5.5. Meanwhile, the support for the token price can be seen near $4. DOT price has been trading below the 50 and 100 Exponential Moving Averages. If the price jumps above the EMA then a strong bullish momentum can be observed in the near future.
The RSI of DOT is near 33 suggesting its presence in the oversold zone. There is a weak upside slope hinting towards a recovery in price.
Summary
Polkadot has seen a decline in the revenue in past 30 days. DOT price is currently in a weak recovery mode and can hit a new high in the future.
Technical Levels
Major Support:$4
Major Resistance:$5.5
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.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/17/polkadot-price-prediction-will-dot-see-a-bounceback-to-10-soon/