Key Takeaways:
- The price of Polkadot (DOT) is down over 10%
- As July came to a close, the token registered an impressive rally
- DOT looks to maintain a crucial support point above the $8 mark as it faces a resistance at $10
YEREVAN (CoinChapter.com) — The price of Polkadot (DOT) has fallen into troubled waters following a week of an impressive rally. DOT, the network’s native token, crashed by over 10% to hit $7.70.
The 40% Polkadot (DOT) price rally
As July came to a close, Polkadot (DOT) found much-needed support from the bulls. In what became the best performance among altcoins, the token rallied over 40% between July 26-31.
The strong performance helped DOT touch earlier resistance levels. As a result, the “Ethereum (ETH) killer” token printed five green candles in a row.
According to CoinMarketCap data, DOT went from an intraday low of $6.53 on July 26 to as high as $9.21 on July 31.
Since August 1, the price had surged 12% before the bulls stepped up to spoil the party.
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DOT price sheds over 10%
Polkadot price analysis has turned bearish today. Despite the previous rally, the token is tanking. After reaching an intraday high of $8.66, DOT fell to $7.70.
At the time of writing, Polkadot has made slight gains from the day’s low to climb back above the $8 mark.
TradingView charts reveal DOT still faces strong resistance at the $10 mark. However, if the bulls throw their weight behind the token, it could break this level to advance higher.
Conversely, Polkadot’s price must stay above the $8 crucial support level. If the price moves below this point, it will be forced to look for new support levels around $6.
Meanwhile, according to Piers Ridyard, the CEO of decentralized network Radix, the Polkadot ecosystem has suffered owing to the recent Nomad chain hack.
As CoinChapter reported, hackers drained out around $190.7 million from the Nomad token bridge in a recent attack on the network. Following the hack, Nomad lost around $190 million of its TVL.
With the price of Polkadot fighting to avoid a further dip, it remains to be seen if the bulls will provide the necessary.
