Polkadot (DOT) had been on a downtrend during the month after it saw a brief bullish momentum in early February. The cryptocurrency’s downward trajectory was broken during the weekly timeframe as the bulls began to gain; however, the daily price movement indicates that DOT may, once again, be heading downwards. At the time of writing, the cryptocurrency stands at a price level of $17.73 with a minor downside movement of 3% during the day. The daily trading volume has reached upwards by 15%. Polkadot is the twelfth-largest cryptocurrency in the market with a capitalization of $19 billion.
What has been happening?
Polkadot has been in the news which has also caused the cryptocurrency to trend on Google as well. Russia’s invasion of Ukraine has caused an outcry amongst the masses and has had an adverse impact on the cryptocurrency market as the uncertainty led to a major chunk of the cryptocurrency market’s global capitalization evaporating. The DOT team and community were quick to play their part after two funds – one for military support and the other for humanitarian support – for Ukraine were created and various contributions were made.
On the other hand, Polkadot’s founder of the DOT Gavin Woods found himself in trouble with the community. Woods pledged that he would donate $5 million worth of cryptocurrency but on the condition that Ukraine’s government post an address in DOT. The community lashed back on Gavin Woods’ statement, questioning his motives. This unfavorable news may have contributed to Polkadot’s current bearish outlook.
The network has also announced its biggest event of the year – Polkadot Decoded – which will be held on 29th and 30th June 2022. The network is currently seeking proposals from developers to get a chance to showcase their innovative ideas and projects at the summit. The deadline for proposal submission is set at 14th March. The conference is organized by the Web3 Foundation and will feature developments in the DOT ecosystem.
What to expect from Polkadot?
The current bearish outlook should not cause investors to shy away from Polkadot as it is one of the most solid projects in the market. Moreover, the long-term outlook of the token is also highly bullish. According to the estimates of Wallet Investor, the cryptocurrency is expected to be operating at a price level of $32 in a year’s time while the five-year projection places it at $93.
