Is Polkadot buy opportunity after the current dip?

By January 23, 2022Layer2
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Is Polkadot buy opportunity after the current dip?

Polkadot DOT/USD has weakened from $55 to $16.20 since November 04, and the current price stands at $18.86.

The cryptocurrency market has collapsed this trading week; Bitcoin went below $35000, and the price of DOT remains under pressure.

Polkadot can easily upgrade itself to changes

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Polkadot is an open-source project that enables cross-blockchain transfers of any type of data or asset, not just tokens. Dr. Gavin Wood, Robert Habermeier, and Peter Czaban are founders of Polkadot, while Web3 Foundation provides grants for the development of the ecosystem.

This project was designed to connect private and consortium chains, public and permissionless networks, and future technologies that are yet to be created.

Users can interoperate with a wide variety of blockchains in the Polkadot network and create a custom blockchain in just several minutes by using the Substrate framework.

Polkadot has unprecedented economic scalability, and it is important to mention that it also provides transactional scalability by spreading transactions across multiple parallel blockchains.

Polkadot can easily upgrade itself to changes without hard forks as better technologies become available, and this ease of development helps Polkadot’s network grow.

DOT is a governance token of the Polkadot network, and it serves to secure the network, for staking and bonding.

Polkadot token holders have complete control over the protocol, which includes the ability to participate in the decision-making process in relation to global upgrades and/or changes to Polkadot.

DOT token has achieved an impressive gain in the first days of November 2021, and it has reached a record high of $55 on November 04.

DOT is currently down more than 60% from its peak; still, Polkadot is a very promising project, and the price of DOT could advance again at levels that we saw in November 2021. JP Morgan chief global strategist David Kelly said:

The recent selloffs have been attributed in large part to the Federal Reserve after it announced that it was planning three interest rate hikes this year. In such conditions, risk-on assets tend to suffer as the cost of borrowing money becomes more expensive.

Bears in control of DOT

Polkadot (DOT) has weakened from its record high of $55, registered on November 04, and according to technical analysis, it remains in a bear market.

Data source: tradingview.com

The strong support level for DOT stands at $15, and if the price falls below it, the next price target could be around $13 or even below.

On the other side, if the price jumps above $25, it would be a strong “buy” signal, and we have the open way to a resistance level that stands at $30.

Summary

According to technical analysis, Polkadot (DOT) remains in a bear market, but if the price jumps above $25, it would be a strong “buy” signal, and we have the open way to a resistance level that stands at $30.

Where to buy right now

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