Polkadot had the second highest development activity in 2022.
DOT prices disappointed significantly after the 2021 ATH, but have been recovering recently.
DOT faces resistance at $5 and may undergo a downside correction.
Polkadot (DOT/USD) buyers are struggling to break above $5. According to technical outlook, the cryptocurrency was rejected from building resistance on the second day. However, Polkadot fans should at least be excited by the relief rally that has seen the price recover from its $4.2 bottom.
If time is the true judge, Polkadot price has been a major disappointment. The cryptocurrency has been collapsing since hitting a high of nearly $56 in November 2021. Now, at a single-digit price, DOT is a shell of its former self.
2022 may have ended on a bad note for DOT buyers, but enthusiasts should be pleased with the activity on the blockchain. According to Santiment data, the blockchain saw its highest development activity in the year following Cardano. Polkadot was followed by Cosmos Blockchain, Ethereum, and Internet Computer in the top five. This shows that a drop in the price of the native token does not in any way mean a decline in the popularity of the protocol. Rather, it was due to the ongoing bear market hitting all cryptocurrencies.
If you are considering Buy DOT, you may need to wait until your throat clears. For short-term investors, a break of $5 or more is necessary confirmation.
DOT price is facing resistance at $5 and the 50-day MA.
DOT/USD Chart by TradingView
Price action suggests that DOT’s long-term momentum remains bearish. The short term is bullish and RSI is currently in bullish territory. However, DOT is facing resistance at the 50-day MA. The moving average coincides with the $5 resistance level.
What are the next steps for DOT?
A potential adjustment is coming. DOT price If the bulls do not recover above $5, they will remain at current levels. If a breakout occurs, DOT could set its next target above $7 with minor corrections at $5.6 and $6.
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