Will Polkadot’s Network Advance Give Renewed Activity to the DOT?

By September 23, 2022Polkadot

Will Polkadot’s Network Advance Give Renewed Activity to the DOT?

By September 23, 2022DeFi
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Polkadot has proven successful in a number of areas recently. Data from Santiment shows that there has been a significant increase in development at Polkadot.

But does this mean a brighter future for Polkadot? The data shows that the largest amount of transfers occurred on September 16th.

In addition, there is better news. Parallel sequencing is similarly very active. The volume of transactions using these minor chains in the Polkadot main chain is an indication of this action.

The most popular are the GLMR token from Moonbeam and the MOVR token from Moonrivers.

Chart: TradingView.com

Polkadot investors arrive in numbers

Investments in Polkadot also reached an all-time high, with DFG ranking first with 52 active projects.

While these claims certainly sound promising, how will they affect DOT’s presence in the market? The performance of the currency in the market has improved thanks to the recent changes.

Investor confidence in the Polkadot ecosystem and the native token DOT could increase if the cryptocurrency market recovers along with the broader financial markets.

Both DeFi and the more traditional financial markets suffer from unfavorable market conditions that make price changes unlikely. The recent interest rate hike of 0.75 per cent has exacerbated already intense selling pressure.

DOT challenges adverse market conditions

The fear caused by the latest CPI data is still evident on the charts as bears continue to test the bottom of the Donchian channel. Although the bulls are trying to gain momentum, adverse market conditions continue to outpace them.

DOT is trading at $6.48 as of this writing, down 6.5 percent in the past seven days, according to data from Coingecko. However, the DOT is expected to receive excellent news from the charts.

The critical support at $6.04 has slowed the rapid decline of the price. It is consolidating a strong bullish trend, and it is more visible on the 4 hour to 1 hour price indicators.

The price settled between $6.04 and $6.83 near the central channel. After a sharp rejection candle at the opening of today’s trading session, the bulls may be able to breach the immediate resistance level of $6.57 and consolidate if there is less volatility around these price levels.

The current price action according to the XABCD harmonic pattern indicates that investors and traders should buy the dip, thus pushing the price to an uptrend.

DOT total market cap at $7.15 billion on the daily chart | Source: TradingView.com

Featured image from VOI.id, chart from TradingView.com

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