Crypto
Polkadot Price Soars in the Wake of Cardano Synergy
Polkadot price has recorded a considerable rise over the past few weeks, breaking above the important level of $5.00. The digital asset has added more than 44% to its value over the past 30 days and has climbed by nearly 9% in the past week.
At the time of writing, the DOT price was trading slightly higher at $5.41, shedding some of the losses incurred from its previous trading session. Polkadot’s total market cap has declined by 2% over the past day to $6.8 billion, ranking it 14th after Chainlink and Toncoin. The total volume of the DOT token traded in the same period has also declined by 8%.
DOT’s Outlook
Polkadot price has recorded a significant upward trajectory over the past four weeks on the back of its announcement of a formal partnership with Cardano and broader market cues. On November 6, Polkadot announced a partnership with Cardano, a significant development in the cryptocurrency sector. Cardano (ADA) announced that it would use Substrate, the foundation of the Polkadot Software Development Kit (SDK), to build its partner chain.
The collaboration aimed to enhance interoperability among Layer 1 blockchains. The collaboration has not only buoyed market sentiment but has also led to a bullish breakout in the Polkadot price. Charles Hoskinson, the founder of Cardano, has previously been complimentary about Polkadot and a possible partnership, suggesting that that is “What Ethereum 2.0 should have been.”
The altcoin has equally benefited from the crypto market resurgence that started earlier in October on the back of hopes that the US Securities and Exchange Commission (SEC) would approve the trading of a spot bitcoin ETF. The speculations have sparked a rally in the crypto market over the past month, seeing the global crypto market cap climb to $1.4 trillion.
The crypto market sentiment has bolstered the demand for crypto assets among investors. The Crypto Fear and Greed Index, which measures investors’ sentiment toward the market, has increased to a greed level of 75 over the past four weeks, suggesting an increase in risk appetite.
The DOT price has shown remarkable resilience in the past few weeks, pumping optimism among investors. Polkadot balances its interoperability with a stable market performance, indicating potential for future growth. Even so, market fluctuations, regulatory barriers, and setbacks could impede its prospects.
Polkadot Price Analysis
The daily chart shows that the Polkadot price has been on a consistent bullish trajectory in recent weeks, reclaiming the important $5.00 level for the first time since August 2023. During this time, the digital asset has managed to move above the 50-day and 200-day exponential moving averages, as well as the 50-day and 200-day simple moving averages. Its Relative Strength Index (RSI) has increased to 68, 2 points below the overbought zone, highlighting an increase in demand and buying pressure.
Consequently, with the bullish divergence in the daily RSI and the partnership with Cardano, the Polkadot price is likely to continue moving higher in the ensuing sessions. A breakout above the immediate resistance level of $6.00 could push the price higher to the next resistance level at $7.00. On the other hand, a dip below the $5.00 level could push the price lower to $4.40, invalidating the bullish view.
DOT Price Chart