- Polkadot price has crashed by more than 77% this year.
- The coin is slightly above an important support level.
Polkadot price is hovering near its lowest level this year. DOT was trading at $6.4, which is slightly above the year-to-date low of $5.97. The coin has crashed by more than 77% this year, making it one of the worst-performing blue-chip cryptocurrencies. Its market cap has crashed to about $6.7 billion.
MoonBeam price rises
Polkadot is one of the biggest blockchain platforms in the world. It was launched by Gavin Wood, one of the co-creators of Ethereum. The network enables developers to build parachains, which are independent layer-1 blockchains that solve some of the top challenges in the industry.
Polkadot has other important building blocks like the relay chain, bridges, validators, and collators. The relay chain is at the heart of the Polkadot ecosystem and is responsible for the network security, consensus, and cross-chain interoperability.
Therefore, the success of Polkadot is often measured by how its parachains are performing. And in the past few months, these parachains have not been doing well.
For example, Astar Network is one of the biggest Polkadot parachain. In the past few months, the total value locked (TVL) in Acala Network has crashed from more than $113 million to the current $54.3 million. This crash is mostly because of the recent de-pegging of the aUSD coin, which is an algorithmic stablecoin in the ecosystem.
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Similarly, Astar Network’s TVL has declined from more than $380 million to about $36 million. Others like Karura, MoonRiver, and MoonBeam have seen their assets crash.
Polkadot price has continued struggling as some of its parachain tokens soar. For example, Moonbeam’s GLMR price has jumped by more than 25% in the past 24 hours. Moonbeam’s TVL has dropped from more than $275 million to about $66 million. Still, other parachain tokens like ASTR and Karura’s KAR have all dropped.
Polkadot price prediction
The daily chart shows that the DOT price has been in a strong bearish trend in the past few months. A closer look shows that the coin has found a strong support level at $5.97, which was the lowest level this year.
Polkadot has moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has been in a bearish trend. Therefore, at this stage, it is clear that Polkadot bears have struggled pushing it below the important support level at $5.9.
As such, more downside will be confirmed if it moves below the important support at $5.9. If this happens, the next key support to watch will be at $5.0.
