Most of the market has responded quite a bit to Bitcoin price action lately. But, even though many altcoins have carved out their own niche, the largest market is still waiting for the Bitcoin signal. Solana, Cardano and Terra (LUNA) organized independent rallies and made new ATHs, while other big alts traveled on the back of the broader market sentiment.
Polka dots are in the last category. But, following the market seems to have worked quite well for cryptocurrencies.
Support for merchants
The DOT’s rather impressive price rally featured an almost V-shaped rally. followed the price of BTC, The Polkadot rally was much more sustained and direct, compared to the king’s coin. The reason behind the same was the strong support from traders in the DOT market.
Top-ranked currencies including Bitcoin, Ethereum, and even Cardano (which made another ATH) had lower trade volumes in this rally, compared to their May rallies. On the other hand, DOT saw almost similar trade volumes this time around.
Bullish price action
Polkadot has been bullish for over a month, with its last four weekly candles closing green. Polkadot’s price has risen more than 170% from the last low of $ 10.3 around July 20. On August 21, the DOT managed to test $ 29, but it soon encountered some consolidation, as $ 28.5 acted as a strong resistance.
This was a crucial level for the DOT as it acted as solid support during the last rally.
Now, at the time of writing this article, price action seemed more neutral than bullish. However, it was notable that the DOT has been consistently making higher lows, a bullish sign, and a sign of a sustained rally.
Also, the RSI for DOT, which appeared to be falling, rose again, presenting pressure from buyers. So is Polkadot ready to top $ 30 as it stands at $ 28.2 at press time?
Is low development an obstacle?
While on the pricing front everything looks good, the DOT metrics seemed to be painting a worrying picture for the alt. Polkadot’s development activity was at an all-time low at the time of this writing. In fact, it has steadily declined after peaking on July 13.
Also, social sentiment, which plays a huge role in the rallies, did not show much market enthusiasm for Polkadot. However, this subdued market sentiment did not affect DOT ROI, which was positive.
In 7 days, ROI against USDT was + 13.85%, for one month it was + 102.12%, for three months it was + 25.42% and it had an annual ROI of + 599.81%. Impressive, to say the least.
In Polkadot’s case, its traders could overshadow the social and developmental aspects to drive up its price. Strong momentum from the market bulls in the near future could cause its price to rise above $ 30.
This is a machine translation of our English version.
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