Polkadot Shows No Sign Of Stopping, As DOT Gains 33% In Last 7 Days

With Bitcoin surging past $20,000, altcoins like DOT (Polkadot) have been riding the broader crypto rally which began for the reason that starting of 2023. Based on CoinGecko, the token is trading at $5.94, and has risen by greater than 12% up to now 24 hours and 33% within the weekly. 

This was attributable to market optimism attributable to positive Consumer Price Index (CPI) data that was released Thursday. With the most important components of the CPI going deflationary, the market may proceed the sharp rally that it began the yr with. 

DOTs Connected

Polkadot, as an ecosystem, has been on a roll currently. Based on Santiment, Polkadot has been seeing a powerful development activity in recent days, adding on to the already bullish momentum of the general crypto market. 

Polkadot also reached over 1 million DOT in nomination pools, making staking on-chain more viable. Crypto.com also released a recent post regarding the present market. Polygon ranked 4th place in TVL with a 5% change up to now seven days. 

Image: Polkadot Insider

This will be related to the recent developments on-chain and the recent crypto market rally. Accompanying these are the improving macroeconomic trends. With the CPI dropping to 6.5%, DOT can proceed its momentous climb in the subsequent few weeks or months if the momentum continues. 

Although some analysts are pessimistic that this rally is for the long run, the overall on-chain performance of the ecosystem will likely be supporting the token and breaking further resistance. 

Polkadot: Going To The Moon?

With the token’s current momentum, it is feasible that DOT will proceed to make higher highs. DOT could also be able to proceed its climb. The token’s high correlation with major cryptocurrencies may also pull the token upwards.

With Bitcoin testing the $21,422 resistance, the coin’s upward momentum will likely be a wave for DOT to ride in the subsequent few weeks or months. Which means that the token would profit with improving macroeconomic trends. 

Short and medium term, DOT can cross the present $6 resistance price range to reassure investors and traders that the rally will proceed. 

DOT total market cap at $6.8 billion on the weekend chart | Chart: TradingView.com

With improving macros and an overall bullish outlook on crypto, DOT should have the ability to succeed in $7 resistance with ease. Nonetheless, if BTC will enter a correction phase, the token can experience a momentary loss in upward momentum.

Investors and traders who’re holding DOT are currently facing great gains in a really short time period. With this in mind, holders of the token ought to be monitoring the DOT’s charts as this high of a rally will be faced with a good correction phase. 

-Featured image by EURACTIV

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