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- The notable upsurge in Polkadot (DOT) in the past few weeks has invalidated the macro bearish outlook and all indicators are pointing towards more gains in the near term.
- The Polkadot ecosystem plays a crucial role in enabling secure multichain transfer of digital assets amid the mass adoption of the blockchain technology and web3 industry.
Polkadot (DOT) network, a fast-growing multichain interchange framework that is designed to enable cross-blockchain transfer of data and digital assets, has attracted notable attention from crypto investors since the bear-market rebound in mid-October. The Polkadot network supports more than 300 decentralized applications (DeFi) ranging from finance, entertainment, and digital collectibles.
Some of the notable Dapps on the Polkadot network include Acala liquidity hub, Bifrost liquid staking, HydraDX AMM, Centrifuge platform, and Moonwell protocol, among many others. As a result, the Polkadot has grown to a mature network with more than 1.2 million non-zero addresses that have facilitated nearly 30 million transfers.
According to market data provided by the token terminal, the Polkadot network has experienced a sharp uptick in transaction fees on the relay chain, which reached an all-time high of around $2.6 million between December 18 and 25. The notable spike in fees collected happened alongside a 200 percent surge in daily active users, who averaged 15.3k on the Polkadot network. The upsurge in Polkadot’s on-chain activity has been partly attributed to a significant increase in inscriptions.
As a proof-of-stake secured blockchain, the Polkadot network has recorded notable interest from both retail traders and institutional investors seeking to earn passively through its staking program. Notably, more than 709 million DOT tokens have been staked to secure the Polkadot network, with the incentive from the 7.59 annual inflation. The Polkadot staking reward has attracted more developers, whereby both core developers and commits have been increasing gradually since its inception.
Closer Look at Polkadot Bullish Sentiments
For the first time since the 2021 crypto bull market, DOT’s weekly Relative Strength Index (RSI) has risen above the 70 level, thus indicating the bulls are in control. The mid-cap altcoin has rallied more than 120 percent since October, with the majority of the gains recorded in December. Currently, DOT/USD is retesting a crucial resistance level of around $9.6, which was established during the 2021 bull rally and the 2022 crypto freefall. In the daily time frame, DOT price has been forming higher highs and higher lows coupled with a golden cross between the 50 and 200 Moving Average (MA), a characteristic of a rising market.
A successful breakout from the psychological resistance level around $9.6 will yield a 100% spike toward the next target of around $16. On the other hand, the DOT price could find a solid support level around $5.5 if the bulls fail to maintain the bullish momentum.
DOT Price Action
The Polkadot (DOT) network has a market capitalization of about $11.2 billion and an average daily traded volume of about $465 million. According to the latest market data, DOT price has rallied around 60 percent in the past four weeks to trade at $8.26.
