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• Polkadot stays bearish with a 75% YTD loss

• DOT has consolidated round $6 help

• Market capitalization plummets from $6B

Polkadot (DOT/USD) has been going through in depth bearish stress recently. The token is buying and selling at $6.74 after a 2.38% drop in the previous day and a 2.72% plunge in the previous week, in accordance with CoinMarketCap. The current worth was final seen in December 2021.

The month-to-month worth outlook exhibits that DOT has dropped 16.79% since buying and selling at $8.1. Similarly, the tokens have plunged by 61.92% in the previous three months. The year-to-date worth outlook exhibits an additional drop of 75.27% from a excessive of $27.3.

The downward momentum in DOT has additionally contributed to a major lower in the token’s market capitalization. Polkadot’s market cap peaked at $53.21 billion when the tokens reached an all-time excessive of $53.44 in November 2021. The worth has since sunk to $6.65 billion.

DOT consolidates at $6 help

Source: TradingView

Polkadot’s 4-hour worth outlook above exhibits a bearish worth outlook primarily based on the MACD indicator. Furthermore, the RSI studying is at 38, pointing the worth may go decrease. Overall, DOT is certain to commerce decrease, with the long-term and short-term technical outlook trying bearish.

A blockchain of blockchains and its relevance

Polkadot is a blockchain platform that helps parallelized chains, also called Parachains. The community permits for the cross-chain switch of tokens in interoperability. The community operates as a sharded multichain platform, which means it may well course of a number of transactions concurrently. DOT is the native token powering Polkadot used for payment fee and governance.

Fundamentally, Polkadot has positioned itself as the blockchain of blockchains. This manner, the platform ensures that it creates an ecosystem of permissionless interplay amongst networks. Moreover, the blockchain has constructed a sidechain known as Kusama for builders to check their tasks earlier than deploying on the major chain.

Summary

The worth of Polkadot at present depends on the adoption of blockchain know-how. As extra tasks deploy on the platform, the long-term worth will enhance. However, from the technical perspective, DOT stays bearish and will commerce decrease.