Polkadot keeps slipping as Layer‑1 capital shifts to other areas

crypthub

4 days ago

Market Rotation

Investors are moving capital away from Polkadot toward other layer‑1 projects such as Solana, Avalanche, Terra and Fantom. This rotation reflects a broader search for higher growth potential and unique blockchain features. The shift pressures DOT’s market perception and valuation.

Polkadot Technical Outlook

DOT trades just below $2, slightly under its 100‑day moving average. A break above $2.58 could open a path to $3, which would represent a 30% gain. However, the RSI is modestly elevated and the token has fallen about 46% over six months, indicating a tight bull‑bear contest.

Future Outlook

The continued outflow of funds suggests DOT will likely remain under pressure while alternative coins capture investor interest. Those projects may benefit from increased capital and attention in the near term. The outlook for Polkadot hinges on breaking key resistance and regaining market confidence.