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Also Polkdate (DOT) priced at $6.08 it is starting to close Negative March with a -4%. This decrease erodes part of the increase in 2023, which thus stands at +40%. The setback is quite evident considering that a maximum was made in February relative to $7.90, marking a growth peak on an annual basis of +86%.
Polkadot is starting to close March in red
Polkadot comes from a 2022 in deep redwhere it closed with -83.84% which left a bad taste in the mouth of many holders and traders.
We’ve said it before, probably Polkadot is paying off a widespread disappointment about the system of parachains, which had been awaited as great news by the crypto world community. The auction system to finance new projects, bringing their DOTs into a blocked staking system, had hinted at a great potential from the point of view of rewards.
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Parachains and lack of news don’t help Polkadot
To date, however, i launched and successful projects are limping, in the attached image we have a summary of their performance in the last 12 months. The best performances are those of Astar Network (ASTR), Lientry (LIT). The data improves if we consider only the first 3 months of this year, in fact Acala, Efinity and Equilibrium remain in red.
Another factor that is harming Polkadot is a total lack of relevant news. For months and months, there has been no news on implementations or the launch of any partnership. The world of crypto tokenswe have had more than once proof that it is highly influenced by news about their life and ecosystem.
However, if the picture of Polkadot from its peak to date is not exciting, it continues to be in the Top Twenty of Coin Market Cap. In fact, at the current price, it capitalizes 6.856 billion dollars and occupies the position number 12 of the CMC.
On the weekly the primary bearish trend is clearly evident
Moving on to a technical – graphic analysis, let’s go down to a chart weekly where we have a view from the all-time high $55 in Nov’21 to date. The long-term bearish trend of these 14 months is well highlighted with the orange arrows, which mark the series of decreasing maximums.
Last December 26 DOT did a relative minimum for the period at $4.224 and from here the rebound phase of January – February ’23 started. The rise stopped at static resistance in the $8 area and the retracement began.
At the level of indicators setup on the weekly, we can see that they are declining, even if they are still positive.
From our resistance is coming down
Going down on a daily chart, we can see that DOT has taken the resistance we indicated to the cent. in our March 15 analysis, Polkadot: Downhill – took support to rebound | It points to resistance at $6.55.
Polkadot made a high at $6.69 to break back below the resistance level and started inverting the trend.
Short term support and resistance
In the current scenario we can see that iIn recent days, the support level has also broken in the $5.90 area also touched yesterday and where it is bouncing from. Right now this is happening in low volatility with no excesses, however the risk is that it goes down towards $5.20. To restart DOT instead it has to break above the resistance at $6.25/$30.