Since the beginning of this year, Polkadot has been on a roller coaster ride as the general cryptocurrency market has fluctuated in recent months.
Recently, the price of Polkadot (DOT) has seen negative sentiment, which has caused the coin’s value to drop slightly.
The price of the coin decreased slightly from $5.51 to $5.12 on May 9, 2023. However, on the same day, it started to gain another positive momentum and recovered to $5.3 today.
Strong bearish momentum
DOT price has been trading sideways over the past 24 hours, indicating a bearish trend. Confirmation of the bearish dynamics of the Polkadot market is the decrease of 24-hour trading volume by 18%.
A decline indicates a decrease in demand for DOT in the market and can lead to more volatility as traders adjust their positions based on market sentiment.
Polkadot’s current market capitalization is estimated at $6.1 billion with a market cap dominance 0.56%. But the increase in selling pressure has significantly affected Polkadot’s price.
Polkadot is at a stage where investors and traders are afraid to buy or hold the coin. As investors take advantage of the current price decline to acquire more DOT, expect a slight recovery in the coming week.
Polkadot (DOT) Technical Analysis
DOT trades below the 200-day and 50-day periods Simple moving averages (SMA). This indicates that DOT has bearish momentum in both the long-term and short-term trends.
The Relative strength index The indicator (RSI) shows that DOT is currently at 32.92. This means that the coin is slightly in the oversold area. This also suggests that DOT is experiencing some downward pressure. However, the asset may bounce back from oversold status and return to a normal trading range.
The MACD indicator it also confirms the bearish trend as its trading below the signal line. This suggests that the bears have more pressure than the bulls.
Recent developments in the Polkadot ecosystem
Meanwhile, the number one gaming blockchain platform, Mythical gamesis leaving the Ethereum network to launch its new Mythos ecosystem on Polkadot.
Recent developments will enable Mythos gaming partners to build the largest and most connected gaming ecosystem in the Web3 industry.
The development will result in a new scalable platform that will be accessible to all Mythos partners and will be compatible 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.
Founder of Mythical Games he declared that the decision to leave the Ethereum ecosystem was due to low transaction speeds and other issues around the network.
This partnership will also benefit the Polkadot ecosystem as Mythical has advanced functionality, streaming technologies and expertise in Web3 gaming. It will also drive the massive adoption of both Polkadot and Mythical.
-Featured image from Pixabay and chart from Tradingview.com
