The Polkadot price has struggled in the past few weeks as interest in the fast-growing currency fade. The DOT price is trading at $35.47, which is 16% below its all-time high of $42.15. Its total market cap has also declined to more than $33 billion, making it the sixth-largest cryptocurrency in the world.
What happened: Polkadot and most digital currencies have struggled recently. After soaring to an all-time high of close to $62,000, the price of Bitcoin has struggled to move even above $60,000. The same is true with other major cryptocurrencies like Ethereum whose price has failed to move back above $2,000.
This price action is mostly because of the performance of the bond market and the probability of high inflation leading to high-interest rates. Indeed, the yields on the 10, 30, and 5-year US government bonds are trading at the highest level in more than a year.
Like Dogecoin, the Polkadot price has dropped because of the fading interest among traders. A look at Google Trends shows that the search for both Polkadot, Polkadot price, and Dot price have dropped substantially after peaking in February.
Further, the Decentralized Finance (DeFi) industry has also peaked, according to data compiled by DeFi Pulse.
The four-hour chart shows that the DOT price has formed a channel that is shown in black. This channel connects the highest points since March 3 and the lowest levels since February 21. Today, the price is at the lower line of this channel. The 15-day and 25-day moving averages have also made a bearish crossover.
Therefore, the outlook for the Polkadot price at this point is neutral. A volume-supported move below the current level will be bearish. It will mean that bears have prevailed, raising the possibility that it will retest the next key support at $30. At the same time, we should not rule out a move back to the upper side of the channel at $40.
