https://ift.tt/Jfy6ok3 Drops 17% From $23 Completing a Double Top Formation

Polkadot is under pressure at spot rates, shaving four percent in the previous trading day and down double digits in the last trading week.

Technically, DOT sellers are in control as per the performance in the daily chart.

Still, Polkadot holders are bullish on the project, expecting their interoperability ambition to project its valuation to mega levels in the months and years ahead.

The Race for Energy Efficiency

The Gavin Wood-led project promotes interoperability and remains compatible with the most active network, Ethereum.

Unlike Ethereum, Polkadot is energy-efficient. According to recent research by Crypto Carbon Ratings Institute (CCRI), the network consumes the least energy of the top blockchain projects globally.

Polkadot consumes 6.6X the electricity an average U.S. household uses every year.

Polkadot has a Technical Advantage over Standard Layer-1 Blockchains

Meanwhile, Polkadot is scalable using Parachains. The Polkadot Parachain slot auction is ongoing. Several high power projects, mainly in DeFi and NFTs, have won slots and are expected to drive global adoption of Polkadot, supporting prices.

Eventually, analysts project that the Metaverse would migrate to interoperable, secure, highly scalable, and well-built layer-one networks of which Polkadot stands out. Polkadot bears advantages over established and standard layer-one networks like Ethereum because of fast, cross-chain transfers by being interoperable and scalable.

Polkadot Price Analysis

At spot rates, DOT is under pressure. The coin has broken down from a tight trading range from $23 and below the 20-day moving average.

As per the arrangement in the daily chart, every high could be a liquidating position for aggressive traders. This preview is valid because buyers didn’t reverse the bearish engulfing bar of mid-last week following the break below in early Asian session on April 11.

DOT is technically within a bear breakout pattern completing a double-top–M-Formation— that may see the coin slide towards $15 in the short term.

Based on this setup, as long as prices are below the bearish engulfing bar of April 6 and middle BB at $21, sellers may unload, targeting $15 in a possible retest.

On the reverse side, a close above $21 may trigger another wave of buying pressure with targets at $23 in a buy trend continuation pattern.