DOT bulls struggle to take over amid low demand, which is a reflection of the Polkadot network and its performance.
DOT is still struggling to secure liquidity despite the recent bullish divergence. We explore the reasons behind the lack of enthusiasm.has been in a downward spiral for the last five months. There were various bullish attempts along the way and signs that the bulls would take over, only for price to extend its downside.
DOT traded at $4.14 at press time, which was roughly a 27% premium form its August highs. More importantly, the cryptocurrency kicked off this week with bullish expectations after flashing a bullish RSI divergence in the last few weeks.Although it may still be too early to judge DOT’s recent attempted upside, the cryptocurrency appears to be experiencing the same problem this week. Demand for DOT has been quite low despite its recent upside, hence its struggle to bounce back.
The above explanation coincides with Polkadot’s dominance performance. For example, the network demonstrated a surge in dominance between October and December last year. This phase was characterized by a robust price rally. Polkadot dominance has since then been slashe from 0.63% to 0.%.Polkadot’s dominance bottomed out at 0.27% towards the end of August. This reflects the downward trajectory observed in DOT’s price action. It was also evident in the network’s performance.
An environment characterized by declining liquidity and the inability to tap into narratives also influenced on-chain volumes.Polkadot’s daily real volume in the last few days was restricted below the $50 million level. This was further evidence of the extent of how the network’s utility slowed in the last few months, consequently affecting DOT.There is some good news despite all the doom and gloom. Polkadot’s ecosystem maintained decent activity so far this year.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Polkadot ‘trails’ Ethereum on dev activity front, but DOT’s price action will…Polkadot [DOT] has long been known for its robust development activity. However, data seemed to suggest that this trend might just be...
Read more »
Polkadot price prediction shows 5% dip, but it’s not all bad news!Polkadot has a bullish market structure on the daily timeframe but this could change if the prices dip toward the liquidity pocket nearby.
Read more »
Polkadot bears take control: Will $3.79 hold as next support?Polkadot (DOT) continued its long-term downtrend, confirming the bearish edge after recently breaking down from its bearish pattern on the dai
Read more »
Will Polkadot fall below its $2 ATL? Assessing key levelsExplore if major support can prevent DOT from hitting its all-time low of $2.00 amid declining retail interest and increasing selling pressure
Read more »
Assessing U.S. SEC’s latest move against FTX: Crypto regulation goes too far?The SEC's decision on FTX repayments sparks criticism and intensifies debates over crypto regulatory clarity.
Read more »
Assessing if Dogecoin will drop below $0.095 or rise above $0.1Dogecoin had low buying volume and the futures market signaled bearish sentiment- can the meme coin bounce from the local support zone?
Read more »