The Polkadot price is also part of the current cryptocurrency sell-off. The coin is trading at $17.15, 68% below its highest in November 2021. It’s also close to its lowest since August 2021.
Reason for DOT Price Crash
Polkadot is a huge blockchain project developed by a computer scientist, Anthony Wood. It strives to be the best platform that developers will embrace with Web 3.0 and other decentralized projects.
Polkadot is unique from other projects with its various significant technologies. For instance, it uses relay chain technology that ensures security, cross-chain interoperability, and consensus.
The coin also uses parachains, blockchains that operate with their own tokens. Others include parathreads and bridges.
LATELY, the DOT price has had a hard time with investor concerns on hiked inflation and overall high-interest rates activities. The Fed declared hiking of interest rates this week, a reason for cryptocurrencies like Bitcoin and Ethereum dropping.
Also, investors worry about Polkadot’s ecosystem after the 2021 successful parachain auction. The auction raised billions; for example, Acala made 32.5 million DOT’s, with a $1.25 billion value.
Moonbeam reported outstanding growth within two months post its launch. Over 3 million transactions have been processed, with over 92 million tokens staked.
This network has developed various projects, including Bitcoin, Suisse, Curve Finance, Solarbeam, and Nova Wallet. However, Moonbeam and other Polkadot projects’ success is unpredictable as it is still too early to forecast.
Polkadot price prediction
The daily chart indicates a bearish pattern for the DOT the past few months. Closely, it indicates that it stuck below the 25-day and 50-day exponential moving averages (EMA) for some time. This is an indication of the bears being in control.
Concurrently, the Polkadot price has moved below the 78.6% Fibonacci retracement level, while the Relative Strength Index (RSI) is at the neutral level of 50.
Thus, the coin’s path of the least resistance faces downwards, with the next key level to watch is at $14.20.