Polkadot trades at $6.34, with weekly losses exceeding 10%.
The ongoing crypto sell-off is putting pressure on the interconnectivity blockchain.
Technical charts indicate more weakness when the price retests support zone.
Polkadot/USD is now trading at $6.34. This price represents a 10.85% drop in the last week. The overall bearish sentiment in crypto markets continues to affect DOT. The token is being affected by the same negative sentiment as other digital assets, such as the Fed’s and BoE rate hikes.
Either way, the political instability raging in Eastern Europe is just as important. An escalation in the Russian-Ukraine war could be on the horizon. Russian President Putin called for partial mobilization in order to send more troops into Ukraine.
Polkadot is continuing to release micro-level updates to the blockchain. The parachains also show stable performance. Polkadot Insider report ranked Moonbeam’s GLMR token as the most traded on the network as of Sept.20. It had volumes of $12.5million. Its counterpart, MoonRiver’s MVR token, followed at $6.3 million.
Polkadot recorded over $77 million in transaction volumes during the week, with an average daily of 1,200 new accounts.
More positive fundamentals relate to the platform’s new staking protocol. Bifrost reported 121.551 minted tokens in the vDOT staking liquid pool four days ago. Bifrost Finance, the top Polkadot parachain and major staking platform, is Bifrost Finance.
DOT retests $6.3 Support
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The daily chart below shows that DOT fell from $8 to just slightly over $6 in ten days. This trend of lower highs, lower lows is a 25% loss. Despite the RSI showing some modest buying, DOT may face consolidation at the 20 and 50 day MAs.
The current level of the DOT has not been a great place to buy. The fact remains that the price looks extremely bearish below key levels. DOT trades at a RSI of 38, which is above the oversold level. There could be more downside than the benchmark, before any trend reverse.