Polkadot has been on a tear, with its governance token increasing by 19.60% in the last 24 hours. The rally is largely attributed to its forthcoming parachain auctions, which is likely to push the value of the DOT token even higher. The impressive run by the digital asset is making investors rush to buy DOT.
DOT: Making Headway To Retest Record High
Since its inception in 2016, Polkadot has been viewed as a worthy rival and substitute for the Ethereum network. Created by one of Ethereum’s finest Dr. Gavin Wood, the proof-of-authority (PoA) protocol has been one of the standout crypto stars in a rapidly growing decentralised finance (DeFi) ecosystem.
Polkadot shot to blockchain fame early this year, making a steady upward trajectory to $18.18 on January 16 from $8.3, increasing more than 100% in the space of two weeks.
The popular Ethereum killer continued its bullish march and hit another high price action of $39.27 on February 21, gaining a long line of investors out to buy DOT. The asset rallied to $45.8 during the April crypto market boom following slight price bumps before tapering out.
A subsequent decline saw it dip and end the month at $36.54, 20% of its previous high. Meanwhile, this served as a breakout window for the governance token as it subsequently entered May on a strong footing breezing beyond its April high and hitting an all-time high (ATH) of $49.50 on May 5.
DOT has since tittered and slumped, shedding more than 50% of its value during the four months of bearish control. However, the ETH rival has been seeing growing market action in the past 24 hours. DOT shut to $42, rallying 25% earlier today before shimmering down.
At press time, the digital currency is still on an uptrend and trades at $41.33, up 19.60% on the daily chart. Weekly gains are also impressive, with the digital asset snapping up 24.65% in a strong bullish move.
With DeFi set to play a crucial role in future financial services, many see DOT as a key cog in the sub-sectors wheel.
DOT Technical And Fundamental Analysis
Turning to the key technical and fundamental indicators of DOT, we notice a couple of impressive performances. The digital asset is soaring above the 20-day moving average (MA) support price of $32.80 as the bulls maintain a stronghold on the market. A trend reversal could see DOT find support below the $35 mark, but this is looking improbable, given the strong tailwinds shown by the 200-day MA price of $27.35.
The relative strength index (RSI) oscillator shows us a strong market sentiment to buy DOT. The oscillator soars close to the overbought region at 68.49, with expected interest in the coming days.
The moving average convergence and divergence also close on a buying signal as the green trendline is trading well above its orange counterpart.
DOT’s remarkable rallies are not entirely far-fetched, and this has been largely spurred by positive news from the Polkadot development team.
In a recently released memo, the Polkadot team announced that its first parachain auctions would be coming up on November 11. The highly anticipated bidding process will allow interested projects to tap into the robust offering of the Polkadot protocol without compromising on their security or purpose.
Also, popular social trading platform eToro recently added support for DOT trading for its 20 million-strong investor landscape, further propelling DOT to a new record high since the May crash.
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