The decentralized finance (DeFi) sector is being faced with increased competition from different parties. Various networks such as Polkadot have sprouted up to offer a more scalable approach compared to Ethereum. With the Ethereum 2.0 upgrade being months away, these platforms are well-positioned to benefit in the short term.
Polkadot is trading at $28.02 at the time of writing after a 3.1% dip in 24 hours.
Polkadot Price Analysis
DOT’s dip in the past 24 hours correlates to how altcoins have performed in the same period. Most coins have made significant losses, and unlike in the past when these coins mimicked BTC’s trend, they are now going contrary to how the primary cryptocurrency is performing.
DOT’s downtrend could proceed if the lack of market support continues. In this case, we could see the coin headed towards the lower support level of $26. This downtrend could also be saved if the entire altcoin market recovers and buyers rally support for these coins. DOT currently ranks as the eighth currency in market cap; hence it will be among the leading gainers if bulls reappear.
On the other hand, the current downtrend could be a price correction after the market made significant gains in the past few weeks. This downtrend could progress to lower levels, and we could see DOT push towards $24. However, DOT did not make significant gains as most altcoins did; hence even with a price dip, prices will consolidate at above $20 if bears are not strong enough.
The Polkadot team is also scheduled to undertake another parachains auction in September. The parachains auctions have had a positive effect on DOT prices, given that there is increased demand for these coins to be used during this auction. Hence, DOT will create an uptrend in September if the same trend that happened during the other auctions is repeated.
Where to Buy Polkadot
If you want to buy DOT during the current dip, you can create an account on the following platforms:
eToro is one of the leading and most reliable exchange platforms. To purchase DOT on eToro, you can create an account, fund it and start trading. eToro also charges low trading fees and supports a wide range of cryptocurrencies and trading pairs.
You can also buy DOT from Binance. Binance is one of the largest cryptocurrency exchange platforms. Binance supports a wide range of cryptocurrencies and trading pairs. The exchange charges low trading fees and commissions.
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