4 months ago 2 min read

Reason for Polkadot's Price Surge by 8% Over the Past 24 Hours


Polkadot will be able to increase the capabilities of its ecosystem and scale new heights through the utilization of relationships with parachains. Recently, Moonbeam Network and its subsidiary, Moon River, teamed up with Bifrost.

There is still hope for Polkadot, and here is a brief summary of how the cryptocurrency has been doing: The price of the DOT increased as a result of certain significant network adjustments. The indicators, however, continue to point in a bad direction.

According to a recent tweet, the integrations have significantly increased developer participation within the ecosystem and enabled liquid staking for the GLMR and MOVR coins.

This is what made Polkadot one of the most active blockchains, as this tweet attests.

Sales of NFTs increased over this time period, demonstrating Polkadot's advancement in this area as well. Due to these developments, the price of DOT has increased by 8% according to CoinMarketCap over the past 24 hours. Can DOT maintain this pace, though?

Hopes Still Alive for DOT

Ecosystem trends are undeniably positive, but there are several indications that investors may be overreacting. The fact that MFI numbers are declining leads us to believe that the current price action is not a strong rally for DOT.

The price level that bears broke in the days prior, $5.43, was where the token was previously rejected. not to mention the RSI indicators' bearish crossover. This rejection is also improved by the compression zone of the Bollinger Band.

The current support level of $5.18 is somewhat flimsy because it might allow bears to join the market and erase all of DOT's gains for the day. Indicating that shorting DOT is substantially more profitable than going long, the EMA ribbon is also blinking red.

CoinGlass reflects this since it shows that most investors and traders are shorting the token rather than going long, according to the cryptocurrency tracker.

With a rating of -0.05, Chaikin's money flow index confirms that a positive trend reversal for DOT is not likely right now but could happen in the future.

Price Prediction for Polkadot

Surprisingly positive ecological patterns do not always translate into advantages in the actual world. Technical signs do not support the recent story of sunshine and rainbows, which is the case for DOT.

With DOT, traders and investors need to be cautious. Retesting of the current support level at $5.18 is likely if the price is unable to rise above the $5.43 ceiling.

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