Polkadot (DOT) has experienced a sharp price correction over the past few days, painting its charts in red as it continues to struggle to find a firm footing and start climbing again.
At press time, the crypto is trading at $6.11, going down by 1% over the last seven days, 5.1% for the past two weeks and by 4.6% over the last month, according to Coingecko.
Additionally, forecast by cryptocurrency data provider Coincodex points to a massive drop for Polkadot.
While the altcoin is expected to slightly increase in value to $6.18 over the next five days, it will fall as low as $4.02 in 30 days.
There are 24 technical indicators that suggest the digital asset is in a bearish trend. The asset is also under pressure from its high supply inflation.
Polkadot Outperforms Ethereum And Solana
Even though DOT has been in a bearish trend recently, it has still managed to surpass Ethereum and Solana in terms of blockchain activity. This is impressive given that both of these cryptocurrencies are ranked higher than DOT in terms of market capitalization.
According to data from Polkadot Insider, the activity index for the asset has been 3124.14 over the last seven days.
ETH only managed to register 78.79 and was actually outperformed by NEAR which was second behind DOT at 90.86.
On the other hand, SOL ranked 4th with 67.21 while Bitcoin, the largest cryptocurrency in terms of market capitalization, came in at 7th place with its 36.64 activity index.
Polkadot’s market capitalization is so large that even the combined total of the other 9 assets on the list would not be enough to surpass it.
According to analysts, Polkadot is a good investment. They recommend buying it.
Many analysts believe that the altcoin’s current downtrend presents an opportunity for accumulation, as the bearish sentiments are unlikely to let up.
Sharing his “long-term plans” with his 415,700 followers, CryptoGodJohn re-echoed the prediction of Coincodex, saying Polkadot is likely to decline to $4.
If that happens, the analyst believes that buyers should take advantage and buy as much DOT as possible.
The goal is to wait until the altcoin can be sold for more than $50. However, that could take a while, as indicators suggest the Department of Transportation will reach that level by 2024.
Despite the volatility of the cryptocurrency market, prices could still surge suddenly. It is therefore important for investors to always keep a close eye on Polkadot.
