Polkadot has become one of the hardest-hit major cryptocurrencies since the 2021 bull market, with its price dropping nearly 99% from its record high.
The decline has reignited discussion among investors about the risks of buying assets during periods of market excitement while also shifting attention toward Polkadot’s long-term technology roadmap.
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DOT Remains Under Heavy Technical Pressure
According to Crypto Patel, the scale of the slump can be seen in the example below: If you had invested $100,000 in DOT at its November 2021 high, it would now have shrunk to $1,459, losing about 98.54% of its value.
Polkadot is clearly seen rising massively on the monthly DOT/USDT chart since its release in 2020, attaining its all-time high of around $55 in November 2021. The interest in parachain auctions and the cryptocurrency bull run contributed to the rise.
Source: X
The trend since then has been a sustained downtrend with lower lows and lower highs. What was previously a strong level of support at $4.00-$4.20 has now shifted to being a significant level of resistance for DOT.
At the moment, DOT is trading around the $0.80 mark, and it appears to be stabilizing, but this is no indicator of a reversal. The conditions required for a bounceback include an uptick in lows, the ability to overcome the levels of moving averages, and breaking the level of resistance.
JAM Upgrade Shifts Focus Toward Polkadot Network Utility
While price performance has disappointed investors, the developers of Polkadot are still developing the JAM protocol in order to expand the network.
Through JAM, Polkadot will be able to execute applications on its own network while maintaining the security of the parachains. This will ensure that the network can handle all types of computation in parallel, including smart contracts, AI agents, media, and more.
According to Polkadot, JAM will be instrumental in promoting the economic growth of DOT through an increase in the demand for computation on the network, as opposed to focusing only on the security of parachains.
This upgrade is expected to cut down the cost of operations by about 40% while encouraging the development of the network.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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