Polkadot price slips as Ethereum Merge turns into a PR nightmare

Polkadot (DOT) price sees a repetition of history unfolding as a very hyped-up event for one of the leading cryptos Ethereum, called the Merge, turned out to be a cold shower for market participants. Just as with the adoption of Bitcoin in El Salvador and the implosion in its price action that followed, so the Merge triggered a 10% drop in Ethereum price, dragging overall cryptocurrencies along with it as markets underwent a “buy the rumour, sell the fact” effect. Although with good intentions to become more ESG, it looks like the Merge will not be pencilled in as a victory in the history books of big cryptocurrency events.

DOT price set to slip 10% in the next twelve trading hours 

Polkadot price has a bit of a hangover caused by what ought to have been a joyful moment on the pages of cryptocurrencies. With the Merge in Ethereum, a software update was pushed to make Ethereum more energy-efficient to mine, boosting the ESG level of cryptocurrencies overall. It had to be the event of the year or overall in the existence of ETH price, but instead, it turned into a PR and price action nightmare as the event got overly hyped-up in the run-up, and triggered a sell-the-fact moment with traders rushing in to take profit on the hyped rally, and triggering another sell-off in cryptocurrencies across the board.

DOT price faces a very bearish opening in the ASIA PAC and European session with equities on the back foot and the Nasdaq futures already down over 1%. This will weigh on sentiment and see traders cut their positions over the weekend. Expect to see DOT price further slip, first below $6.76, which means a new low for September, and then down to $6.23 by the US closing bell later today. 

DOT/USD Daily chart

On the other hand, with the new low for this week already printed, some small buying could occur as traders will want to try and be part of a possible uptick into next week. As the dust settles on this eventful week, traders could see the silver lining and some positive signals on Monday morning. That would mean that DOT price could pair back some gains and trade back to $7.50 in the near-term, trying to test or break above $7.85 by Friday next week.