Polkadot price pulled back in the overnight session as investors focused on the FOMC meeting. DOT dropped to a low of $6.16, which was the lowest level since October 25. It has dropped by more than 6% from its highest level this month. So, what next for DOT prices?
Polkadot price remained in a consolidation phase in the overnight session after the Fed delivered its decision. It hiked interest rates by 75 basis points and hinted that it will continue with cumulative rate hikes. In all, analysts expect that the bank will hike rates by 50 basis points in December and then slow hikes to 0.25% in February and March.
DOT price also reacted to the latest staking system in Polkadot. In a statement, the developers introduced nomination pools for the Polkadot staking system, The feature makes it possible for users to pool their DOT tokens together on-chain to nominate validators and receive rewards. As such, anyone with as little as 1 DOT can stake and earn rewards.
The statement came shortly after the developers launched the Polkadot Staking dashboard beta. It is a user-friendly staking application that people can use to stake and earn rewards in the ecosystem. Polkadot hopes that users will earn more rewards by staking directly instead of using third parties.
Polkadot is also working on an upgrade that will increase its capacity to between 100k and 1 million transactions per second (TPS). This will be made possible through a feature known as Asynchronous Backing. It will decrease the parachain block time to 6 seconds, increase the amount of available block space, and allow blocks to be reused.
Polkadot price prediction
On the 4H chart, we see that the DOT price dropped after the FOMC decision. It dropped and then formed a small hammer pattern. In price action analysis, this pattern is usually a bullish sign. It moved slightly above the standard pivot point while the Relative Strength Index (RSI) tilted upwards.
Polkadot price is slightly below the 25-day moving averages. Therefore, because of the hammer pattern, the coin will likely continue rising as buyers target the next key resistance level at $6.8, the highest point last week. A drop below the support at $6.13 will invalidate the bullish view.