Since the beginning of this year, Polkadot has been on a roller coaster ride as the general cryptocurrency market has fluctuated over the past months.
Recently, the price of Polkadot (DOT) has experienced negative sentiment, causing a slight decline in the coin’s value.
The coin’s price slightly decreased from $5.51 to $5.12 on May 9, 2023. However, it started to gain further positive momentum the same day and recovered to $5.3 today.
Strong Bearish Momentum
The price of DOT has been trading sideways within the last 24 hours, indicating a bearish trend. As a confirmation of the bearish momentum in the Polkadot market, the 24-hour trading volume is down by 18%.
The decline indicates a decrease in demand for DOT in the market and might lead to greater volatility as traders adjust their position based on the market sentiment.
Polkadot’s current market cap is estimated at $6.1 billion, with a market dominance of 0.56%. But the increase in selling pressure has impacted the price of Polkadot significantly.
Polkadot is in the phase where investors and traders are afraid to buy or hold the coin. As investors take advantage of the current dip in price to acquire more DOT, anticipate a modest recovery in the coming week.
Polkadot (DOT) Technical Analysis
DOT trades below its 200-day and 50-day Simple Moving Averages (SMA). This indicates that DOT has a bearish momentum in both long-term and short-term trends.
The Relative Strength Index (RSI) indicator shows that DOT currently reads 32.92. This indicates that the coin is slightly in the oversold region. It also suggests that DOT is experiencing some downward pressure. However, the asset may rebound from its oversold condition and return to a normal trading range.
The MACD indicator also confirms the bearish trend as its trading below the signal line. This indicates that the bears have more pressure than the bulls.
Recent Development In Polkadot Ecosystem
Meanwhile, the number one gaming blockchain platform, Mythical Games, is departing from the Ethereum network to launch its new Mythos ecosystem on Polkadot.
The recent development will allow Mythos gaming partners to build the biggest and most connected gaming ecosystem in the Web3 industry.
The development will result in a new scalable platform, accessible to all Mythos partners and compliant with Web2 gaming platforms, including the Epic Games Store.
This accessibility is a core principle for Mythical as it continues to bridge the gap between blockchain and traditional gaming.
The Mythical Games founder proclaimed that the decision to leave the Ethereum ecosystem was due to the slow transaction speeds and other issues around the network.
This partnership will also benefit the Polkadot ecosystem as Mythical has an advanced feature, streaming technologies, and Web3 gaming expertise. It will also drive the massive adoption of both Polkadot and Mythical.
-Featured image from Pixabay and chart from Tradingview.com