- Polkadot (DOT): Reasons for the Downtrend
- Avalanche (AVAX) Also Faces Challenges
- DigiHorse (DIGI) Revenue Model Excites Investors
The price of Polkadot (DOT) continues to decline amid a lack of market enthusiasm, while Avalanche (AVAX) also faces challenges. However, the DigiHorse (DIGI) project has generated significant interest.
Polkadot (DOT): Reasons for the Downtrend
Polkadot (DOT) has been sluggish since the start of the year, plummeting 69.80% from its peak in March. Experts suggest that the downturn is not over yet. At the time of writing, DOT is nearing a major support zone around $4.00. Despite historical buying pressure at this level, analysts point out that the negative volume indicated by the Awesome Oscillator and the Moving Average Convergence Divergence (MACD) being in the negative zone suggest further declines for DOT.
Avalanche (AVAX) Also Faces Challenges
The decline in AVAX has been accelerated by negative sentiment from retail traders and large-volume holders, as both groups sell off their holdings. This bearish trend is confirmed by negative open interest, which indicates that short traders dominate, and by the fact that outflows of AVAX have been lower than inflows over the past seven days, suggesting a growing supply that could further depress prices. Moreover, long traders hoping for a price increase have faced significant losses, with $480.54k liquidated out of a total of $546.43k in the last 24 hours.
DigiHorse (DIGI) Revenue Model Excites Investors
DigiHorse, a Web3 horse gaming platform currently under development on the Layer 2 blockchain Base, aims to offer a unique and immersive gaming experience that current horse racing games lack. DIGI, the native token for DigiHorse, has sold out two phases of its presale in record time. This success is largely due to investors’ understanding and confidence in the game’s revenue model, which they believe makes DIGI a solid long-term investment. DigiHorse’s revenue model includes: future in-game purchases that allow users to use their DIGI tokens to buy items that help them advance to the next stage and unlock new features and abilities; tournament fees, with users paying in DIGI to enter major tournaments that offer rewards for winners; and a token burn mechanism that will be implemented at launch, reducing the circulation of DIGI to increase demand and potentially drive up its value.
The current market situation shows significant challenges for cryptocurrencies like Polkadot (DOT) and Avalanche (AVAX), while DigiHorse (DIGI) attracts investors with its promising revenue potential.
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