Early on Wedneday, Polkadot (DOT) seems to be on a strong rally, marking double-digit daily gains after a period of some lull, powered by an uptick in both volatility and trading volume, suggesting a rising interest in the cryptocurrency among traders and investors. At the time of writing, DOT/USD is trading around $30.34.
Polkadot’s trading volume has been on the rise since the beginning of this week and experienced a sharp spike in the previous session, helping boost its price. Also supporting the bullish moves is a dip in circulating supply of DOT tokens, as a decrease in supply amid higher interest has caused its price to increase.
One of the biggest fundamental developments supporting the uptick in Polkadot is news about a DeFi lending and staking protocol on its blockchain, Parallel Finance, raising $22 million in funding during the Series A round, gaining a valuation of $150 million. This makes it one of the largest funding rounds on the Kusama network – Polkadot’s canary network. The funds will allow Parallel Finance to increase the DeFi offerings on the Polkadot blockchain, giving its users greater access to AMM, staking, auction loans and trading of derivatives.
In addition, Wanchain – a blockchain interoperability solution has announced an integration with Moonbeam to deploy non-custodial cross-chain infrastructure on Moonriver, lending the DeFi capabilities of Kusama a further boost. The partnership will also eventually help Wanchain develop a way to connect Polkadot and Moonbeam to a cross-chain DeFi ecosystem, further increasing its popularity among projects.
Leading crypto analyst and trader Michaël van de Poppe has also shared a bullish forecast for Polkadot, stating that it could be heading towards a strong rally after breaking past resistance at $29 against USDT. Now that the DOT price is trading above this level, according to his analysis, its price can take off just like Solana and Terra’s LUNA did recently.
Key Levels to Watch
On the H4 price chart of DOT/USD, moving averages and leading technical indicators MACD and momentum are signaling a strong bullish bias. DOT’s price is holding well above the pivot point at $25.74 and has overcome the first resistance at $28.62.
It looks like buyers are getting ready to test the next resistance soon at $31.52. A break past this can take Polkadot beyond the $35 mark until the next resistance at $37.30.