The Polkadot price has not been spared by the ongoing cryptocurrencies sell-off. The DOT price is trading at $33.69, which is 12% below yesterday’s high of $38.51 and 20% below its all-time high.
The background: Polkadot is a fast-growing blockchain project that was created by the co-founder of Ethereum. The two projects are similar in that they help developers build decentralized applications like DEXes and lending platforms.
Most importantly, it offers interoperability to other blockchains. This aspects help to improve its scalability, isolatability, and security. Indeed, many developers have now shifted to the network. Some of the most popular projects built on the Polkadot network are Edgeware and Kusama.
Polkadot price rallied during the weekend as part of the overall cryptocurrency rally. The price has erased some of those gains in the ongoing crypto sell-off, which is in part because of the potential ban in India.
Turning to the three-hour chart, we see that the DOT price has found some strong resistance at the $38.76 level. Indeed, it has formed what seems to be a triple-top pattern. In technical analysis, this pattern is usually a sign of a bearish reversal. The same is true with the double top. Also, the 25-day and 15-day exponential moving averages have made a bearish reversal pattern.
Therefore, the next key level to watch is the neckline of the triple top at $32.00. If the price moves below this level, it will increase the possibility of it dropping further. The next key level to watch is $27.98, which is the lowest level on February 26.
