The Polkadot price is attempting to bounce back after it declined sharply on Tuesday. DOT is trading at $42.30, valuing it at more than $20.22 billion. It is the ninth biggest cryptocurrency in the world.
What happened: Polkadot is a fast-growing blockchain network that is relatively similar to Ethereum. The network helps people build applications like those in the Decentralized Finance (DeFi) industry.
Polkadot was built by Gavin Wood, who is a well-known figure in the blockchain industry because of his role in the founding of Ethereum. This fact has also helped Polkadot become popular.
Another factor that has contributed to this is the fact that the network is relatively faster and cheaper for developers. Some of the top projects built on the network are Kusama and Ontology.
Still, these factors have not prevented the Polkadot price from falling. At the current level, Polkadot has dropped by more than 72% from its highest level this year. This is a steeper drop than what other popular coins have dropped. So, what next for DOT?
Polkadot price prediction
On the four-hour chart, we see that the Polkadot price has formed what looks like a head and shoulders pattern, which is usually a bearish signal. The coin has also moved below the short and longer-term moving averages. It is slightly above the neckline of the H&S pattern at $18.40.
Therefore, while a comeback is possible, in the near term, there are no signs that it will happen especially now that it has formed a bearish pennant pattern. Therefore, the coin will likely keep falling, with the next key target being at $17.50. On the flip side, a jump above $25 will invalidate this trend.
DOT price chart
Follow Crispus on Twitter.
Read More: Chart Points to More Declines