Polkadot [DOT] has been in a downward spiral for the last five months, with various bullish attempts along the way, only for the price to extend its downside. DOT traded at $4.14 at press time, which was roughly a 27% premium from its August highs.

Despite the recent bullish RSI divergence, DOT is still struggling to secure liquidity. This is in contrast to the performance of other top-performing cryptocurrencies, which have been aligned with key narratives that have prevailed over the last few months.

The Polkadot network has failed to capitalize on these trends, leading to a decrease in its dominance. For example, the network demonstrated a surge in dominance between October and December last year, which was characterized by a robust price rally.

However, Polkadot's dominance has since then been slashed from 0.63% to 0.%. This suggests that liquidity is flowing elsewhere, and the network is struggling to find a bullish footing.

The reasons behind DOT's lack of enthusiasm and liquidity are not entirely clear, but they may be related to the network's failure to capitalize on the prevailing market narratives. This has led to a decline in investor interest and a struggle to maintain its price momentum.

Source: https://ambcrypto.com/assessing-polkadots-12-month-low-and-the-future-of-dot/

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