Polkadot (DOT) price hits roadblock, falls 10% after surge

image from polkadot.network

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.

The price of Polkadot (DOT) surged at the end of July. Credit: CoinMarketCap

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.

DOT looks to maintain the $8 support mark to prevent a further dip. Credit: DOT/USD daily chart on TradingView

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.