Polkadot ($DOT) Price Analysis: Bearish Sentiment Returns
After a promising start to the week, Polkadot ($DOT) failed to maintain its upward momentum and is trading below $7 again.
After concluding the previous week in the green, holding its price above $7, $DOT failed to maintain the momentum and is back trading in the red as of Friday, May 10.
Bearish Sentiment Returns: $DOT Over the Week
Polkadot’s price dropped sharply on Friday after slipping below a crucial support level of $7. $DOT had been trading relatively stable since May 2, increasing by 5.51% to rise above $7 and the 200-day SMA. $DOT battled but held its mark above $7 on May 3 and May 4. $DOT increased on May 5 but was trading down on the 6th, dropping by 2.46%, eventually settling at $7.13. $DOT continued trading in the red on the 7th and 8th, with the price eventually falling to $6.98. Polkadot, however, recovered on Thursday, May 9, increasing by 1% to $7.05.
Bearish sentiment, however, returned on Friday, May 10, seeing $DOT decline by 4.40% to $6.74, and was trading at $6.72 on Saturday, May 11. At the time of writing, $DOT trades at $6.74, a minimal increase from yesterday.
Polkadot Price Uncertainty
As it stands, sellers forced the $DOT price below its support level of $7. Despite trading below its $7 support, $DOT retains a strong support level at $6.40, and if sellers persist, DOT could fall to this level. A potential recovery and rebound toward $7 may occur if sellers succeed.
Crucial Polkadot Developments
While buyers and sellers pull $DOT back and forth, Polkadot achieved another major development this week. Polkadot completed a significant upgrade and enhanced its network by implementing Asynchronous Backing.
Implementing Asynchronous Backing enhanced Polkadot’s flexibility in blockspace allocation and overall performance. Coupled with Elastic Scaling and Agile Coretime, the network inches closer to its Polkadot 2.0 vision. PolkaWorld, A social media account focused on the Polkadot ecosystem, discussed Asynchronous Backing, explaining:
“Asynchronous backing greatly increases the system’s flexibility and efficiency, allowing more transactions to be processed in a shorter time, thereby enhancing the overall throughput and responsiveness of the network.”
Polkadot also announced another significant development with the release of the Join-Accumulate Machine (JAM) Gray Paper.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
