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Is Polkadot (DOT) Worth a Punt After The Recent Sell-off?

June 22, 2022

Polkadot DOT/USD has weakened from $23.86 to $6.34 since April 02, and the current price stands at $7.81.

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.”

DOT is the native cryptocurrency of the Polkadot network, and this token can be used for voting, staking, bonding, and securing the network. Token holders have control over the protocol and can participate in the decision-making process concerning global upgrades and/or changes to Polkadot.

Technically looking, Polkadot (DOT) remains under pressure, the prices of most public cryptocurrencies have collapsed in a relatively short period, and the market is absorbing the potential of a recession.

American investor Jeffrey Gundlach said that we can see new lows for the cryptocurrency market in the weeks ahead and that he would not be surprised to see Bitcoin at the $10,000 level.

Polkadot (DOT) has collapsed from its recent highs above $23, registered on April 02, and according to technical analysis, the risk of further decline is not over.

The current support level for DOT stands at $7; if the price falls below it, the next price target could be around $6 or below.

On the other side, if the price jumps above $9, it would be a “buy” signal, and we have the open way to a resistance level that stands at $10.

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