The last 30 days have proved very difficult for Polkadot (DOT). The coin has been dropping fast, including the total value locked or TVL. But despite this downtrend, there is still a chance that DOT could rebound in the near term. Here is all you need to know.
Total Value Locked (TVL) on DOT has dropped by nearly 78% in just a month.
But DOT is trying to consolidate, and it could rebound in the near term.
At the time of writing, the coin was trading at $17.51, virtually unchanged in the last 24 hours.
Data Source: Tradingview
Polkadot (DOT) – How soon can it rebound?
A trend reversal for DOT is not far away. In fact, looking at the price action, the downtrend has stagnated. This could suggest that perhaps DOT is consolidating and trying to find sufficient demand.
But the drop in TVL is a big blow for investor confidence. In just one month, Polkadot has lost over 78% in TVL. It will take time to recover these losses but even then, the price might rebound much faster. After all, the technical indicators are somewhat bullish.
For instance, DOT still remains above its 50-day SMA even after the TVL plunge. Relative Strength Index, a crucial momentum indicator, also points towards a bullish trend. While we are not clear how far the coin can rise once the downtrend reverses, a gain of around 30% is still possible.
Best time to buy Polkadot (DOT)
Polkadot (DOT) is an Ethereum scaling solution that saw immense growth last year. Some of these gains are however fading away but do not let this fool you.
Polkadot remains a powerful cross-chain solution that will have a huge role to play in the blockchain evolution. This is why the recent plunge in pricing gives you the best chance ever to buy at a very good entry point.