Polkadot Token Faces Decisive Moment As It Settles In The Top 10 Club
Polkadot (DOT), a shared protocol focused on “true [blockchain] interoperability” and one of the top 10 ICOs of 2017, trimmed its losses from last week over the weekend, with technical analysis suggesting the sell-off may be over for now.
As of press time on Tuesday (10:22 UTC), DOT was still down by almost 3% over the past 24 hours, trading at USD 4.26. Looking at the past 7 days, however, DOT remains the worst performer among the top 25 cryptoassets by market capitalization, falling by nearly 36% for the week.
The latest losses for DOT came after the token went through a 1:100 split on August 21 that also saw all token balances increase by 100x, keeping the value of all token holdings the same as before the split.
And although the token has seen quite a bit of selling so far in September, chart analysis on the shorter-term 4-hour chart of DOT after the token split now suggests that a decisive moment is approaching for the token, after it bounced off the USD 3.5 level on September 5. The subsequent rally then brought DOT back up to the USD 4.9 level before falling again, forming a triangle pattern in the chart that now appears primed for a strong breakout. However, triangle patterns could break out in either direction.
More bullish, however, is the popular technical indicator Relative Strength Index (RSI), which entered oversold territory on the 4-hour chart following last week’s sell-off. An oversold reading on the RSI is typically seen by technical analysts as a sign that the price will soon reverse higher.
Meanwhile, DOT has also finally entered the top 10 ranking of the most valuable cryptoassets on all of the three major data providers; Coinpaprika, CoinMarketCap, and CoinGecko, after earlier only having its full circulating supply accounted for by GoinGecko.
Polkadot first entered GoinGecko’s top 10 list on August 25, and is now listed as the 7th most valuable cryptoasset across all three data providers, with a market capitalization of USD 3.6bn.
In August, Kelvin Koh, Partner at crypto investment firm Spartan Capital, predicted that DOT will be among the top 3 assets on CoinMarketCap “within a year.”