Is Polkadot (DOT) buy opportunity after the current dip?

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

Polkadot allows users to launch their own blockchains

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.”

By using the Substrate framework, users can create a custom blockchain in just several minutes, and it is also important to mention that Polkadot can easily upgrade itself to changes without hard forks as better technologies become available.

The mission of this project is to enable a completely decentralized web where the identity and data of users are their own, safely secured from any central authority. The team of Polkadot added:

Polkadot makes it easier than ever to create and connect decentralized applications, services, and institutions. By empowering innovators to build better solutions, we seek to free society from its reliance on a broken web where its large institutions can’t violate our trust.

Thanks to its next-generation nominated proof-of-stake (NPoS) model, Polkadot consumes a small fraction of the energy, and it has the lowest carbon footprint among proof-of-stake protocols.

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 they can participate in the decision-making process in relation to 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.

Bears in control of DOT

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.

Data source: tradingview.com

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

Summary

Polkadot is an open-source project that offers you the ability to interoperate with a wide variety of blockchains in the Polkadot network. 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.

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