Polkadot (DOT) has weakened more than 70% since April 02, falling from a high of $23.55 to a low of $5.66. The current Polkadot (DOT) price stands at $6.70, which is nearly 80% off from its 2022 highs registered in January.
Many cryptocurrencies, including Polkadot, came under selling pressure in early Tuesday trading as FTX Token (FTT), the digital coin issued by Sam Bankman-Fried’s cryptocurrency exchange FTX, dropped to its lowest level since February 2021 amid growing concerns about the finances of Alameda Research, SBF’s hedge fund.
But where is the price of Polkadot (DOT) going next, and what can we expect from November 2022?
Today, Crypto Lists will discuss Polkadot (DOT) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you have if trading with leverage.
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DOT token is software, not security
Polkadot is an open-source project that enables cross-blockchain transfers of any type of data or asset, not just tokens. Polkadot allows users to launch their own blockchains on top of the main Polkadot blockchain, and because of this, it is often called a “blockchain of blockchains.”
The mission of this project is to enable a completely decentralized web where the identity and data of users are their own, and it is important to note that Polkadot can easily upgrade to changes without hard forks as better technologies become available.
Polkadot was founded by Gavin Wood (a co-founder of Ethereum) alongside co-founders Peter Czaban and Robert Habermeier in 2016. The DOT cryptocurrency plays a key role in maintaining and operating the Polkadot network. By owning and staking DOT, users can vote on network upgrades, with each vote being proportional to the amount of DOT cryptocurrency they stake.
Last week, Daniel Schoenberger, сhief legal officer of Web3 Foundation, a non-profit behind the development of Polkadot (DOT) and Kusama (KSM) platforms, shared an important update on the DOT token status.
According to Daniel Schoenberger, the representatives of the Web3 Foundation spent nearly three years in discussions with the U.S. Securities and Exchange Commission (SEC). They were working to make the DOT status and usage compliant with all requirements, and by November 2022, DOT has morphed and is software, not a security.
The Polkadot (DOT) community welcomed this announcement, while Robinson Burkey, former growth director of Polkadot’s DeFi hub Acala Network, said that DOT is the first ever altcoin with such an impressive status.
Supply: 1,065,329,984 / 1,146,279,936
Release date: January 1, 2001
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Technical analysis for Polkadot (DOT)
The Polkadot (DOT) has weakened from $23.55 to $5.66 since April 02, 2022, and the current price stands at $6.70. Many cryptocurrencies, including Polkadot, came under selling pressure in early Tuesday trading as FTX Token (FTT), the digital coin issued by Sam Bankman-Fried’s cryptocurrency exchange FTX, dropped to its lowest level since February 2021 amid growing concerns about the finances of Alameda Research, SBF’s hedge fund.
On the chart below, we can see that DOT has usually been moving in the range from $6-$8 last several months, and as long the price of DOT is below $10, it remains in the SELL-ZONE.
Important support & resistance levels for Polkadot (DOT)
On this chart (the period from March 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Polkadot (DOT) remains under pressure, but if the price advances above $9, the next target could be resistance at $10. The current support level is $6, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $5. If the price drops below $4, which represents very strong support, the next target could be located around $3.
What speaks for the rise in the Polkadot (DOT) price?
Daniel Schoenberger, сhief legal officer of Web3 Foundation, a non-profit behind the development of Polkadot (DOT) said that, as discussed; recently that by November 2022, DOT had changed its status to software, not a security. Despite the Polkadot community welcoming this announcement, DOT remains under pressure.
The upside potential for DOT remains limited for November 2022, especially after comments from Fed officials who signaled plans to push forward with the tightening cycle. Traders should also consider that the price of Polkadot is correlated with Bitcoin, and if the price of Bitcoin jumps above $22000, we can see DOT at higher price levels.
What indicates further downfall for Polkadot (DOT)?
Many cryptocurrencies, including Polkadot, came under selling pressure in early Tuesday trading as FTX Token (FTT), dropped to its lowest level since February 2021 amid growing concerns about the finances of Alameda Research, SBF’s hedge fund. The current DOT price stands at $6.70, which is more than 85% off from its all-time high price, and traders should consider that the risk of further decline is still not over. The cryptocurrency market continues to be bearish, following a considerable lack of demand in the market and the macro event.
What analysts and experts say?
Daniel Schoenberger, сhief legal officer of Web3 Foundation, a non-profit behind the development of Polkadot (DOT), said that by November 2022, DOT had changed its status to software. November will likely be a tough period for Polkadot, and according to Mike Novogratz, CEO of Galaxy Digital, DOT and many other cryptocurrencies could decline even more. Craig Erlam, a Senior Market Analyst at Oanda, said that the outlook for risk appetite in the near term is not looking good, and cryptocurrencies would not make any significant jump until the Fed shifts its policy from hawkish and goes back to monetary easing.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
