BitDAO's BIT token has declined significantly today, with its price down 7.46% over the past 24 hours to $0.5336. This has lowered BitDAO's total market capitalization to $1.02 billion.
Trading volume for BIT stands very low at just $88,280 over the past day. Moreover, the token has plunged 4.24% in the last hour alone, extending its downward trajectory.
What's Causing BitDAO's Decline?
BitDAO has given up its recent gains, falling in line with the broader altcoin market weakness. BIT faces immediate support around $0.50. A decisive break below this could see a steeper selloff towards $0.40.
The heavy losses come despite BIT having surged nearly 25% over the past month. However, bearish momentum has dominated this past week with a 2.16% gain.
To stop the slide, BIT needs to reclaim the $0.60 level and build upon that. However, low trading volumes make it vulnerable to high volatility ahead.
Will BitDAO Bounce Back in 2023?
Looking ahead, BitDAO retains promising long-term prospects as one of the largest DAOs in crypto. As a DAO focused on decentralized finance, further DeFi adoption could lift BIT again.
However, uncertainty around BitDAO’s roadmap and product offerings appears to be weighing on investor confidence currently. More transparency on development plans is needed.
In summary, BitDAO shows potential but remains a high-risk, speculative DAO token in the current bear market. While further declines may occur short-term, its low valuation could attract buyers on an extended pullback.