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Polkadot (DOT) Price: Rebound Soon?
What is Polkadot?
Polkadot is a blockchain platform and cryptocurrency, with DOT being its native token. The platform is designed to enable different blockchains to exchange messages and perform transactions without the need for a trusted third-party. This capability facilitates cross-chain transfers of data and assets, making it possible to build decentralized applications (dApps) on the Polkadot network.
The primary blockchain in the Polkadot network is the relay chain. It is responsible for network governance, validating data, achieving consensus and executing transactions. User-created parallel chains are auctioned off. These allow users to create and operate their own blockchains using Polkadot's infrastructure.
The relay chain acts as the governance layer of the Polkadot network, ensuring that all transactions and data transfers are validated and consensus is achieved across the network.
Price breakout soon?
Polkadot (DOT) is currently experiencing a local low at $6.6. This week, the price has dropped from $7.6, a key level that has repeatedly hindered the price from rising
further and caused a shift from a positive
to a negative trend. Conversely, the price
has found substantial support at $7, where
buying pressure has historically been
robust enough to prevent further decline.
Since mid-March, when DOT surged to its previous all-time high of $11.55, the cryptocurrency has faced notable challenges. First, DOT has dropped sharply to a low of $5.80 since then. After recovering from this low, DOT has been trading in a narrow range between $6.40 and $7.50 since April 14.
Polkadot is often referred to as one of the "sleeping giants" among major altcoins.
The moving averages for DOT currently signal a sell. Similarly, RSI stands at 38, placing it in the "neutral" zone. This suggests that while DOT is not currently overbought or oversold, it may be some weeks away from a significant rebound.
