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The latest upswing in the crypto market has benefited Polkadot (DOT) immensely as it notches up double-digit daily gains early on Monday, as investors cheered the surge in market leader Bitcoin. At the time of writing, DOT/USD is trading around $15, up by more than 11% on the day.
After several weeks of bearish moves, Bitcoin (BTC) started climbing higher last week and experienced quite the volatility over the weekend, soaring by over 20% over the past week. The crypto king looks set to give the key $40,000 level a test soon, supported by encouraging comments from influencer Tesla CEO Elon Musk who hinted that his company could consider restarting payments in cryptocurrencies soon. More support for cryptocurrencies overall came from reports that e-commerce giant Amazon could consider accepting payments in digital currencies after its recent job listing for “an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap”.
While bullish moves in Bitcoin and other leading cryptocurrencies have spurred newfound strength in other coins across the board, the DOT token is enjoying additional support from the launch of the first DEX on the Polkadot ecosystem. Kaura Swap, an automated market maker, is the first decentralized exchange to settle transactions using its own DEX-specific parachain connected to Kusama’s mainnet. As we know, Kusama is Polkadot’s canary network and launched its very first parachain auctions about a month ago, aimed at improving interoperability among various blockchain networks – a promising feature that can give projects significant scalability.
The blockchain of blockchains, as Polkadot is known, is seeing the development of several use cases lately. Recently, Switzerland based issuer SEBA Bank, in partnership with 21Shares and Valour, launched the SA1 Polkadot ETP for trading on the SIX Swiss Exchange. Meanwhile, Pontem – an experimental network for Facebook’s own digital currency initiative Diem, has recently partnered with an infrastructure provider on the blockchain, PinkNode, to deploy Diem (formerly known as Libra) on Polkadot’s network.
Key Levels to Watch
On the 4-hour chart of DOT/USD, most of the moving averages in addition to leading technical indicators MACD and momentum are exhibiting a strong bullish bias. The price is holding above the pivot point at $12.73 and looks set to test the first resistance level at $15.08.
DOT/USD
A break above the key $15 level will see buyers gearing up to take the price above the $20 mark. However, in order to do this, they will have to break past the next resistance level at $16.42.
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