Polkadot struggles to make a bullish comeback after a 70% crush

Polkadot struggles to make a bullish comeback after a 70% crush

By Motiur Rahman - min read

– Bearish wave halts on Polkadot.

– DOT lost more than 40% last week.

– Polkadot awaits a potential deal with FC Barcelona.

Polkadot has been one of the most famous altcoins and managed to hit a price of $55 in November 2021. It is currently the eleventh biggest cryptocurrency with a market cap of $18,344,821,245.

The past few weeks have been tough on the cryptocurrency market, and Polkadot has been one of the major victims of the recent market dip. Since the November high, DOT has lost more than 70% of its value to trade at a low of $16 on 22nd January.

However, DOT has managed to stay afloat at the $19 mark forming a flag, with bulls trying to overcome the strong bearish pressure in the market.

Source – TradingView

From the Weekly chart above it is clear that the market is strongly bearish. And, it might continue in that direction, especially with the recent hawkish interest rates statements from Central Banks around the world and the worrying inflation. The next level of support is at the $10 mark, a break of this level might scare away enthusiasts of the Polkadot blockchain network and risk the coin losing its entire value.

On the positive side, FC Barcelona announced that they are considering having the Polkadot Blockchain network as their official jersey sponsors. The current official Jersey sponsor for Barcelona is Rakuten, an e-commerce company from Japan and the contract ends July 2022. If Polkadot manages to get this deal, it will greatly boost the awareness of the Polkadot blockchain and increase its popularity and trust.

Cryptocurrencies have had a couple of huge sports deals in terms of sponsorships, FTX Exchange signed a deal with Major league Baseball, Coinbase Exchange signed a deal with National Basket Ball Association (NBA).