After touching an all-time high over the last weekend, Polkadot has undergone what looks like a correction, with prices slipping below the $40 level which was holding as support earlier in the day. At the time of writing, [[DOT]] is trading around $39.
While Polkadot prices are holding somewhat steady for now, the key support level was a crucial one as a break below $40 can send the digital currency tumbling down to as low as $37. On the other hand, stronger interest among buyers can comfortably drive prices above $42, but the ATH is likely to offer strong resistance, preventing too strong an uptrend immediately.
The fundamentals side remains strong in the near future, with USDT – the largest stablecoin by market cap, is set to dip its toes into the Polkadot ecosystem via Kusama, its canary network. As it works towards rolling out a multi-chain network offering, this development with Tether promises users higher value through the possibility of increased scalability, affordability and stability.
Not only this, the Tether compatibility is likely to make Polkadot’s blockchain network a more attractive option for DeFi even as Ethereum remains wrought with challenges related to high gas fees, network congestion and uncertainty about upcoming network upgrades. With USDT, upcoming and current DeFi projects can propel the value of DOT higher by making its blockchain network far more attractive as an alternative to Ethereum.
This development supports our forecast for Polkadot which estimates room for further bullishness in this cryptocurrency in the coming months.