Will the progress of the Polkadot network give new power to the ailing dot?

By September 23, 2022DeFi
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Will the progress of the Polkadot network give new power to the ailing dot?

Polkadot has recently proved successful in many areas. Data from Sentiment shows that Polkadot’s growth has increased dramatically.

But does this mean a bright future for Polkadot? The data shows that the highest number of transfers took place on 16 September.

Apart from this, there is more good news. The parallel chain is also very active. The volume of transactions on the Polkadot main chain using these secondary chains is an indicator of this action.

Two of the most famous are the GLMR token from Moonbeam and the MOVR token from Moonriver.

Chart: TradingView.com

Polkadot investors rise in numbers

Investment on Polkadot is also at an all-time high, with DFG leading the way with 52 active projects.

While these claims certainly seem promising, how will they affect DoT’s market presence? The coin’s performance in the market has improved thanks to recent changes.

If the crypto market recovers along with the broader financial markets, investor confidence in Polkadot’s ecosystem and native token DOT could increase.

Both DeFi and more traditional financial markets are facing adverse market conditions that make price movements unlikely. The recent hike in interest rates to 0.75 per cent has added to the already intense selling pressure.

Challenge to DoT from adverse market conditions

Fears are still evident on the charts due to recent CPI data as bears continue to test the bottom of the Donchian Channel. Even though the bulls are trying to gain momentum, the adverse market conditions are weighing them down.

At the time of this writing, DOT is trading at $6.48, down 6.5 percent over the past seven days, data from Coingecko shows. However, DoT expects good news from the charts.

The crucial support at $6.04 has slowed down the steep decline in the price. This is consolidating a strong bullish trend, which is more evident on the 4-hours to 1-hour tick indicators.

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

The current price movement according to the XABCD harmonic pattern indicates that investors and traders should buy the downside, causing the price to move into an uptrend.

Dot’s total market cap on the daily chart is $7.15 billion. Source: TradingView.com Featured image from VOI.id, Chart from TradingView.com

source: www.newsbtc.com

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