DOT Could Be at Risk of Dropping Even Lower After 90% Drop
According to the crypto market tracker, CoinMarketCap, the price of Polkadot (DOT) has declined over the last 24 hours.
At the time of writing, the price of DOT is around $7.31, which is 7.37% lower than its past-day price. The 24-hour price movement has also added to DOT’s slump in price over the last 7 days as the coin now finds its price down by just over 20% over the last 7 days.
Ranked number 11 on CoinMarketCap’s list of the biggest crypto projects by market cap, the current market cap of DOT is estimated to be $7.15 billion. This ranks it above Dai (DAI) with its market cap of $6.72 billion, and underneath Dogecoin (DOGE) with its market cap of $7.53 billion.
The weekly chart for DOT/USDT shows how the price of DOT dropped from its peak of around $54 to its current level of $7.31, which is around an 86% drop in this bear market. Seeing that the price of DOT has retracted almost 90%, is there a risk that the price will drop even more?
The one main thing to be aware of is the fact that DOT’s price dropped below the key level of $10.63 as can be seen on the chart. The next key support level that DOT may head to is $5.09. If the price reaches this point, it will be another 30% drop.
Technical indicators such as the 9 and 20 EMA lines show the magnitude of the bearish situation for DOT. Another indicator that flags as bearish is the RSI line approaching extreme oversold territory.
Bulls may pounce on the opportunity. However, given the magnitude of the bearish sentiment expressed on the weekly chart, we could see DOT drop even lower if bulls don’t step in soon.