polkadot. wooden cubes with the inscription polkadot on the background of the distributed defi network
Polkadot’s price has traded sideways for the past few days. However, in today’s trading session, the prices have remained relatively stable, with prices dropping by less than a percentage point. The sideways trading comes after days of resurgence that saw the crypto prices climb by 34 per cent to the current price.
Polkadot has not performed well throughout the year, losing 63 per cent of its value year to date. However, this month saw its largest drop, where at one point, the prices were trading half the price of the monthly opening price.
Despite the recent price drops, the platform’s technology has continued to gain traction with other blockchains and startups. Recently, Project Liberty, a social media disrupter and a brainchild of real estate billionaire Frank McCourt announced it would be using the Polkadot framework. The social media venture by McCourt is the fulfilment of a pledge he made last year of $100 million aimed to solve the current problems with the traditional social media platforms.
Such a massive investment in a project that will run on Polkadot is likely to help the project continue to recover from the recent price falls. The project is also among the few cryptocurrencies in the past few months that have shown resilience in the markets and have not dropped at an extremely high rate.
Today’s trading session shows Polkadot prices trading with relatively low volatility and momentum. The prices are only down by less than a percentage point. Today’s prices are also a continuation of the past few days’ sideways market that has seen Polkadot trading within a tight margin.
Using the daily chart below, I expect the Polkadot prices to continue with the sideways market for the subsequent few trading sessions. However, considering the prices are coming out of a long-term bearish move, there is a high likelihood of the prices starting another leg of a bullish move after the current sideways market ends. Therefore, I expect the prices to trade above $12 after the current sideways market.
However, my bullish analysis will be invalidated if the prices fall below the $9.3 support level. It will also mean prices might fall further. The likelihood of prices setting a new low will also be high.
This post was last modified on %s = human-readable time difference 13:42