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The strong rally in altcoins fueled by Bitcoin’s resurgence has benefited Polkadot (DOT) immensely over the past few sessions, helping the cryptocurrency register a weekly gain of over 18%. At the time of writing, DOT/USD is trading around $17.67.
Although the mood in the markets has not completely reversed into bullish territory confidently, there are several reasons why altcoins are making higher gains than the market leaders like Bitcoin and Ethereum lately. On the one hand, the crypto sector is being weighed down by increasing regulatory scrutiny around the world and on the other, the energy intensive processes involved in Bitcoin mining have also caused the crypto king considerable damage over recent months.
However, it is in this space that emerging players like Polkadot are making a mark, touting far more energy efficient transaction processing capabilities. In addition, there are far more use cases emerging for the Ethereum killer, especially on the launch of its parachains that will give projects the much needed feature of interoperability among different blockchain networks. The DOT token has been making strong gains ever since the successful parachain auctions on Polkadot’s canary network, Kusama.
On the technical front, leading crypto analyst and influencer ‘The Crypto Dog’ has forecast an upcoming rally in Bitcoin in the coming three months, which could fuel further bullish moves in DOT as well. In addition, he has also predicted more upside for Polkadot, expecting a rally of 83% in the near-term.
Key Levels to Watch
On the H4 price chart of DOT/USD, moving averages as well as the MACD indicator are exhibiting a strong bullish bias, pointing to the likelihood of the uptrend to continue. However, the momentum indicator is flashing sell, suggesting that there could be some sellers in the market too.
DOT/USD
Polkadot’s price is sitting just above the pivot point at $17.23 at the moment. Further bullishness could see buyers take the price higher to test the first resistance level at $21.08. Once this level is broken, watch out for the next level at $23.73 before it can rise above the key $30 level.
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