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DOT Price (Polkadot) Holds Strong At $6.6, Signs Point To Fresh Rally Ahead

Polkadot (DOT) is correcting gains from the $7.75 against the US Dollar. The price could start a fresh increase unless there is a close below $6.30.

  • DOT is consolidating gains above the $6.60 support zone against the US Dollar.
  • The price is trading above the $6.65 zone and the 100 simple moving average (4 hours).
  • There is a key bullish trend line forming with support near $6.65 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
  • The pair could start a fresh increase if the bulls protect the $6.65 and $6.30 support levels.

Polkadot Price Holds Ground

After forming a base above the $5.50 support, DOT price started a decent increase. The price was able to clear the $5.85 and $6.00 resistance levels to move into a positive zone, like Bitcoin and Ethereum.

Polkadot even surpassed the $6.65 resistance zone and settled above the 100 simple moving average (4 hours). Finally, the bears appeared near the $7.75 zone. A high was formed near $7.77 and the price is now correcting gains. There was a drop below the $7.20 and $7.00 levels.

DOT declined below the 61.8% Fib retracement level of the upward move from the $6.31 swing low to the $7.77 high. However, it is still above the $6.65 zone and the 100 simple moving average (4 hours).

There is also a key bullish trend line forming with support near $6.65 on the 4-hour chart of the DOT/USD pair. The trend line is close to the 76.4% Fib retracement level of the upward move from the $6.31 swing low to the $7.77 high.

DOT Price (Polkadot)

Source: DOTUSD on TradingView.com

Immediate resistance is near the $7.05 level. The next major resistance is near $7.20. A successful break above $7.20 could start another strong rally. In the stated case, the price could easily rally toward $7.75 in the near term. The next major resistance is seen near the $8.00 zone.

More Losses in DOT?

If DOT price fails to start a fresh increase above $7.05, it could continue to move down. The first key support is near the $6.65 level and the trend line.

The next major support is near the $6.30 level, below which the price might decline to $5.70. Any more losses may perhaps open the doors for a move toward the $5.00 support zone.

Technical Indicators

4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now below the 50 level.

Major Support Levels – $6.65, $6.30 and $5.70.

Major Resistance Levels – $7.05, $7.20, and $7.75.

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DOT Price (Polkadot) Spikes 5% and Primed To Surge Toward $6

Polkadot (DOT) is gaining pace above the $5.25 resistance against the US Dollar. The price could surge further toward the $5.85 and $6.00 levels.

  • DOT is gaining pace above the $5.25 resistance zone against the US Dollar.
  • The price is trading above the $5.30 zone and the 100 simple moving average (4 hours).
  • There is a key bearish trend line forming with resistance near $5.55 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
  • The pair could gain bullish momentum if there is a close above $5.55 and $5.60.

Polkadot Price Regains Strength

After consolidating above the $5.00 support, DOT price started a decent increase. The price was able to clear the $5.20 and $5.25 resistance levels to move into a positive zone, like Bitcoin and Ethereum.

Polkadot cleared the 100 simple moving average (4 hours) and tested the $5.60 resistance. A high is formed near $5.58 and the price is now consolidating gains. It is up nearly 5% and shows signs of more gains in the coming sessions.

DOT price is now trading above the $5.30 zone and the 100 simple moving average (4 hours). Immediate resistance is near the $5.55 level. There is also a key bearish trend line forming with resistance near $5.55 on the 4-hour chart of the DOT/USD pair.

DOT Price (Polkadot)

Source: DOTUSD on TradingView.com

The next major resistance is near $5.60. A successful break above $5.60 could start another strong rally. In the stated case, the price could easily rally toward $5.85 in the near term. The next major resistance is seen near the $6.00 zone.

Are Dips Supported in DOT?

If DOT price fails to continue higher above $5.55 or $5.60, it could start a downside correction. The first key support is near the $5.35 level.

The next major support is near the $5.30 level or the 61.8% Fib retracement level of the upward move from the $5.11 swing low to the $5.58 high, below which the price might decline to $5.10. Any more losses may perhaps open the doors for a move toward the $5.00 support zone.

Technical Indicators

4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.

Major Support Levels – $5.30, $5.10 and $5.00.

Major Resistance Levels – $5.55, $5.60, and $6.00.

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Analyst Thinks DOT Will Reclaim Former Glory With Polkadot 2.0

DOT, the native currency of Polkadot, a smart contract platform, remains under pressure, posting sharp losses after soaring to an all-time high of around $55 in 2021. The coin is trading at about $6, volatile but up roughly 45% from 2022 lows, buoyed by the broader recovery across the crypto scene.

Will DOT Break Above Immediate Resistance Levels?

Despite DOT’s woes, one crypto trader, @Ashcryptoreal, is bullish on the coin’s prospects, pointing to the eventual implementation of Polkadot 2.0, a critical update for the cross-chain network. Taking to X on November 27, the crypto trader believes that Polkadot 2.0 will fix present issues plaguing the smart contract platform. 

Specifically, Polkadot 2.0 represents an overhaul set to introduce several enhancements that could, if executed as stated, propel DOT above current resistance levels. With rising DOT demand, the coin, and by extension, the platform, could soar, rising to its former glory as one of the leading blockchains with dense user activity. 

Looking at price action, DOT is moving within a broad horizontal range with caps at around $3.5 and $7.5. Despite the recent spike, which saw the coin roar by 45%, prices are moving inside the bull bar of early November. 

Polkadot price trending upward on the weekly chart | Source: DOTUSDT on Binance, TradingView

Based on this, there must be a sharp expansion from spot levels above $5.6 with rising trading volumes for buyers to be in charge. Even so, the current formation still favors buyers.

What’s The Big Deal About Polkadot 2.0

Polkadot 2.0 overhauls certain features as it is currently in the network. However, most importantly, analysts observe that proposed changes could enhance the network’s capabilities and attract more developers. 

After the update, Polkadot will migrate from the dynamic block space allocation system, allowing developers to purchase block space as needed, either in bulk or individually. This flexibility could make the network more appealing to various projects.

Additionally, Polkadot 2.0 will introduce elastic cores, enabling the network to adapt to varying computing demands depending on use. This adaptability may make the network more efficient. Moreover, it adapts to the diverse needs of developers.

The concept of coretime, which measures computing resource demands, will be a notable addition to Polkadot 2.0. Like in EOS, resources in “core time” will be purchased through auctions or pay-as-you-go basis, allowing developers more control.

Analysts expect these changes to increase the demand for DOT since the coin serves as a medium of exchange. All on-chain transactions are settled in DOT. 

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Polkadot (DOT) Market Cap Dips: Q3 Sees 16% Decrease In Value

Polkadot (DOT), one of the prominent blockchain networks in the crypto space, experienced a 16% decline in market capitalization in the third quarter (Q3) of 2023, according to a recent report from Messari. 

This decline came after a moderate downturn in the overall cryptocurrency market during Q3, despite favorable court rulings for XRP and Grayscale. The total crypto market capitalization declined by 5.8%, with Bitcoin (BTC) and Ethereum (ETH) falling by 7.5% and 10.0%, respectively.

Polkadot Closes Q3 With $5.2 Billion Market Cap

As reported by Messari, Polkadot’s market capitalization closed at $5.2 billion, positioning it as the 13th largest crypto asset by market cap in Q3 2023 (currently 15th). 

Polkadot

Polkadot’s financial structure is based on a weight-based fee model, which differs from the gas-metering model in other networks, such as Ethereum.

Transaction fees in Polkadot are determined and charged before execution, with the calculation comprising a weight fee reflecting computational resources, a length fee based on transaction size, and an optional tip to incentivize block authors. 

In Q3 2023, Polkadot generated revenue amounting to $94,000, representing a 3% decrease compared to the previous quarter. Messari suggests that Polkadot’s revenue tends to be relatively lower compared to its competitors due to the network’s structural design.

On the other hand, the native token of Polkadot, DOT, serves three primary purposes: governance, staking, and parachain bonding. During Q3 2023, the staking percentage of DOT rose by 12% compared to the previous quarter, reaching 49%. 

This increase led to reduced staking rewards and a 12% decline in the annualized nominal yield to 15%. According to Messari, the close alignment of Polkadot’s staking rate with the ideal rate demonstrates the effectiveness of its mechanism.

Polkadot’s OpenGov Milestone

The Polkadot treasury supported various initiatives in Q3, including software development, bounties, client upgrades, and community events like meetups and hackerspaces. 

According to Messari, the implementation of OpenGov on June 15 marked a significant milestone, revolutionizing treasury management and enabling concurrent proposals with distinct requirements. At the end of the quarter, the Polkadot treasury held approximately 45 million DOT ($185 million).

Polkadot

Furthermore, Polkadot has recently completed the official release of Polkadot 1.0, marking the achievement of a significant milestone outlined in the Polkadot whitepaper. 

The network’s codebase has been fully transitioned to a repository managed by the community through Polkadot OpenGov and the Technical Fellowship. The roadmap for the next iteration, Polkadot 2.0, will be determined through community discussions and consensus. 

Founder Gavin Wood has proposed ideas for additional mechanisms to allocate Polkadot’s block space and for creating treaty-like agreements between multiple blockchains called “accords.”

Polkadot

As of this writing, the DOT token has exhibited a noteworthy upward trend since October 19, closely following Bitcoin’s lead. Presently, the token is trading at $4,839, reflecting a notable increase of over 16% within the past fourteen days.

Featured image from Shutterstock, chart from TradingView.com 

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DOT Price (Polkadot) Surge to $5.5 – Are Bulls Ready For This?

Polkadot (DOT) is gaining pace above the $4.50 resistance against the US Dollar. The price could surge toward $5.5 if it clears the $4.80 resistance.

  • DOT is slowly moving higher above the $4.50 resistance zone against the US Dollar.
  • The price is trading above the $4.60 zone and the 100 simple moving average (4 hours).
  • There is a key bullish trend line forming with support near $4.50 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
  • The pair could gain bullish momentum if there is a close above $4.80 and $4.85.

Polkadot Price Regains Strength

After forming a base above the $4.00 handle, DOT price started a decent increase. The price was able to clear the key barrier at $4.20 to enter a positive zone, like Bitcoin and Ethereum.

Polkadot cleared the $4.50 resistance zone and the 100 simple moving average (4 hours). It traded to a new multi-week high at $4.803 and is now consolidating gains. It is well above the 23.6% Fib retracement level of the upward move from the $4.046 swing low to the $4.803 high.

DOT price is now trading above the $4.60 zone and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $4.50 on the 4-hour chart of the DOT/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $4.046 swing low to the $4.803 high.

DOT Price (Polkadot)

Source: DOTUSD on TradingView.com

Immediate resistance is near the $4.80 level. The next major resistance is near $4.85. A successful break above $4.85 could start another strong rally. In the stated case, the price could easily rally toward $5.20 in the coming days. The next major resistance is seen near the $5.50 zone.

Are Dips Supported in DOT?

If DOT price fails to continue higher above $4.80 or $4.85, it could start a downside correction. The first key support is near the $4.62 level.

The next major support is near the $4.50 level and the trend line, below which the price might decline to $4.35. Any more losses may perhaps open the doors for a move toward the $4.20 support zone.

Technical Indicators

4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.

Major Support Levels – $4.62, $4.50 and $4.20.

Major Resistance Levels – $4.80, $4.85, and $5.50.

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Polkadot Road To Recovery – Will $4 Mark The Turning Point?

Polkadot (DOT) has been grappling with a descending resistance trendline, experiencing a relentless decline since February. In the month of October, the digital asset suffered a 10% drop, plummeting from $4.3 to $3.6. 

Market analysts are warning of the potential for further losses should the prevailing bearish pressure persist. However, a slight glimmer of hope emerged as DOT attempted a reversal at $3.6, hinting at the possibility of overcoming the overhead resistance barrier.

At present, the DOT price according to CoinGecko stands at $3.74, depicting a marginal 0.3% decline over the last 24 hours and a 2.8% dip over the span of seven days. 

DOT’s Struggle For Recovery

The absence of horizontal support below the current price underscores the significance of Fib retracement levels in forecasting potential bottoming areas. Notably, a Fibonacci retracement tool was utilized, encompassing the lower high of $4.8 on August 29 and the recent dip of $3.6 on October 12. This analysis highlighted that the path to recovery for DOT faces significant obstacles at the 23.6% Fib ($3.9) and the 38.2% Fib ($4).

Complicating matters further, the $4 level, serving as the second resistance target, coincides with a daily bearish order block (OB). This confluence suggests that crossing the $3.9 threshold could prove challenging for bullish momentum.

Polkadot Developers Stand Strong

Despite the persistent price downturn, the developers within the Polkadot ecosystem remain resolute and undeterred. This unwavering commitment is evident from the substantial Polkadot active developers, which are currently hovering close to an all-time high. This figure notably exceeds the levels recorded in 2021 when the altcoin’s price reached its peak.

In a recent announcement, Parity Technologies, a significant player in blockchain infrastructure, revealed its strategic shift towards decentralization within the Polkadot (DOT) ecosystem. The forthcoming organizational changes are anticipated to mark a new chapter for the company in the months to come.

Polkadot’s Cutting-Edge Technology Advancement

Amidst circulating rumors, Parity Technologies promptly dispelled speculations about a massive layoff of approximately 300 employees during a recent off-site gathering in Mallorca. The company emphasized that any adjustments to the workforce will be gradual and in alignment with its progressive decentralized strategy.

Emphasizing their dedication, Parity underscored their commitment to driving the advancement of Polkadot’s cutting-edge technology. Their key focus remains on enhancing the developer experience and fostering a resilient developer community within the Polkadot ecosystem, ensuring its sustained growth and innovation.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Mudrex

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Polkadot Cross-Chain Bid Takes Flight As DOT Battles Uncertainty

Polkadot (DOT) is making strategic moves to propel its development forward as bearish market conditions continue to cast a shadow over the crypto landscape. In recent weeks, the network has shifted its focus away from speculation, opting instead to double down on its commitment to technological advancement. 

This move was evident in the multiple presentations it delivered, shedding light on its ongoing efforts and its ambitious goal of achieving 1,000 parachains.

A Paradigm Shift In Polkadot’s Strategy

In a landscape where various blockchain networks are fiercely vying for cross-chain dominance, Polkadot is emerging as a formidable contender. The Sub0 developer conference served as a platform for the network, reaffirming Polkadot’s commitment to cross-chain integration and the immense potential it holds.

The implications of this move are profound. Polkadot envisions a future where parachains, interconnected through its innovative architecture, foster a thriving ecosystem of decentralized applications, each with its unique use cases and communities. This holistic approach to blockchain interoperability opens up vast opportunities for developers and users alike, promising seamless interactions between disparate blockchain ecosystems.

Navigating Choppy Waters: DOT’s Price And Sentiment

DOT price has been navigating choppy waters since February. As of the latest data, DOT is trading at $4.01, according to CoinGecko, with a 24-hour movement of 0.1% and a seven-day decrease of 4.3%. This downtrend has led many to wonder if DOT can regain its bullish momentum in a bearish market.

On-chain data cited in a report suggests a glimmer of hope, indicating a slight improvement in DOT’s weighted sentiment over the last three weeks. This uptick in confidence among traders suggests that some believe in DOT’s potential for an eventual upswing, though it has yet to manifest in price action. 

Looking Ahead: DOT’s Prospects In A Bearish Altcoin Market

As cryptocurrency analyst Benjamin Cowen suggests, altcoins, including DOT, may face challenges throughout the remainder of 2023, a pattern often observed in pre-halving years. Nevertheless, Polkadot’s recently unveiled plans and its unwavering commitment to technological innovation position it favorably for the long run.

The network’s vision of a cross-chain future, with an expanding parachain ecosystem, could serve as a catalyst for renewed investor interest and a potential bullish reversal.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

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Polkadot To Increase Parachains By 10X, Will This Support Free-Falling DOT?

Polkadot, a platform aiming to drive blockchain interoperability, wants to increase the number of parachains from 100 to 1,000 in a planned upgrade. The network, which remains one of the most valuable by market cap, has, like most layer 1 networks, suffered from dropping user activity over the past months. 

DOT Is Down Over 90%

The dip follows the crypto winter in 2022. However, the upcoming upgrade might catalyze demand, even supporting DOT, the native currency.

DOT is changing hands at $4 at spot rates, down by over 90% when prices soared to as high as $55 in the last bull market. Even though the contraction has significantly impacted prices, other altcoins, including Solana and Algorand, suffered the same fate. 

Polkadot price on September 22| Source: DOTUSDT on Binance, TradingView

Even so, with the Asynchronous backing update, whether DOT will find support is yet to be seen. The reveal on September 21 didn’t move DOT, and the coin is edging lower, towards 2023 lows.

Polkadot developers are now setting their eyes on Asynchronous backing. Sophia Gold, the Engineering Lead at Parity Technologies, said the update is “the most significant evolution of parachain consensus since we launched parachains almost two years ago.”

Their goal is to increase the number of parachains to 1,000 by the end of 2024, effectively boosting the network’s transaction processing speeds to over 1 million.

Asynchronous backing enables flexible scheduling for our future scaling work through elastic scaling and instantaneous core time. We have a credible roadmap to get Polkadot to support 1,000 parachains and 1m+ transactions per second. The design is there – we know how to scale Polkadot for the indefinite future.

The Asynchronous Backing: What It Means For Polkadot

With this update, Polkadot is introducing a feature called “pipelining.” This means multiple parachain blocks can be processed simultaneously instead of waiting for one block to be fully validated and included on the relay chain before moving on to the next one. 

Accordingly, Polkadot would process more transactions every second at any instance, effectively scaling the network without relying on layer-2 solutions common in Ethereum or Bitcoin, for example. Since “pipelining” will enhance throughput, Polkadot will have a higher capacity. For this reason, the developer plans to half blockchain validation time from 12 to 6 seconds. 

A key feature about Asynchronous backing is that any parachain block that fails to be added to the “relay chain” on the first attempt can be reused. Developers note that this will significantly improve network efficiency due to reduced wastage.

It is the combination of pipelining and reusing of parachain blocks that Polkadot developers say opens the door for the number of Parachains to be increased from the current 100 to 1,000. With enhanced on-chain scalability, running more parachains can be more feasible.