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The Polkadot (DOT/USD) price rose to an important resistance level as cryptocurrency prices tilted higher on Thursday. DOT rose to $28.35, which was the highest it has been since May 21. It has a market capitalisation of more than $25 billion (£17.6 billion) and is the eighth biggest cryptocurrency in the world.
Polkadot rises
Like most altcoins, the price of Polkadot declined sharply on May 21 as investors worried about Chinese regulations and high interest rates in the United States. At the time, the cryptocurrency declined by more than 72% to a multi-month low of $13.90. Since then, the price has jumped by more than 105%.
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For starters, Polkadot is a relatively popular blockchain project that was built by Gavin Wood, who was also a co-founder of Ethereum. Polkadot is a project that is relatively similar to Ethereum in that it allows developers to build decentralised projects, also known as Dapps.
In the past few years, many developers have selected Polkadot as their platform of choice. They love it because it is relatively scalable, fast, and relatively secure than Ethereum. Most importantly, projects built on the platform can work together with those of other chains.
Some of the most popular projects built on Polkadot are Kusama, Chainlink, and Ontology. The three projects have a market capitalisation of more than $3 billion, $14 billion, and $1 billion, respectively.
The Polkadot price is rising after Master Ventures launched a fund to support developers who are building on the ecosystem. The $30 million fund will support projects that are competing for parachain slots.
The price is also rising because of the overall demand for digital currencies. In the past 24 hours, cryptocurrencies like Bitcoin, Ethereum, Binance Coin, and Cardano have jumped by more than 5%.
Polkadot price analysis
Turning to the four-hour chart, we see that the DOT price has bounced back after crashing hard in May. The token has managed to move above $26.14, which was the highest point on May 28. It was also the neckline of the inverted head and shoulders pattern.
It has also moved above the 38.2% Fibonacci retracement level at $27.44. At the same time, it has risen above the 25-day and 50-day exponential moving averages (EMA). Therefore, the Polkadot price will likely continue to rise as bulls target the next key resistance at $31.70, which is about 12% above the current level.
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