As a seasoned crypto investor with a decade of experience under my belt, I can confidently say that the bullish breakout led by Bitcoin is a clear sign of an impending altcoin rally, and Polkadot (DOT) is my top pick for this upcoming altseason.
Currently, Bitcoin (BTC) dominates the altcoin market with a bullish surge. Meanwhile, Polkadot (DOT), an open-source protocol that facilitates cross-chain data and asset transfers seamlessly across blockchains, shows signs of an upcoming rebound. As a mid-cap altcoin, Polkadot holds a fully diluted valuation of approximately $6.4 billion and trades with around $256 million in daily volume on average. In the past 24 hours, Polkadot has experienced a rally of over 5 percent, trading at around $4.28 during the early New York session on November 8.
Looking at the technical analysis perspective, the Polkadot (DOT) price appears to be forming a significant reversal pattern over the past year. When examining its weekly performance against the US dollar, the DOT price has consistently found a strong level of support above $3.6, having tested this level three times so far.
Over the short term, the DOT coin has managed to break free from a descending logarithmic pattern, indicating the potential start of an uptrend or bull market in the near future. On a weekly scale, the Relative Strength Index (RSI) is showing signs of an upward trend divergence. Also, DOT’s value has been weakening compared to Bitcoin and Ethereum for the past three years.
In simpler terms, if DOT’s price keeps falling and consistently ends its trading sessions below the $3.6 support level in the short term, the optimistic view about its price increase will no longer hold true.
$DOT is Once again Breaking out of Falling Wedge Pattern after Long Downtrend..📈
Expecting up to 2x Bullish Rally in the Coming days so Don’t miss the Ride..#Crypto #Polkadot #DOT
— Captain Faibik 🐺 (@CryptoFaibik) November 8, 2024
Why Bet on Polkadot in the Upcoming Altseason
The cryptocurrency sector is currently experiencing its steepest upward surge within the broader bull market cycle, a phase initiated by the fourth Bitcoin halving that occurred earlier this year. While institutional investors have been actively amassing Bitcoin in recent times, it’s anticipated that focus will soon shift towards altcoins due to the election of pro-cryptocurrency candidates in the U.S.
As a crypto investor, I’m seeing a strong inclination towards rotating funds into top altcoins, particularly Ethereum, as there’s been a significant surge in cash inflows into US spot Ether ETFs. This trend suggests a growing demand for utility coins, especially within the DeFi sector. I believe this increase is primarily driven by the anticipated shift in Bitcoin’s dominance in the coming months.
The Polkadot system is at the forefront of the cross-chain interaction field, thanks to its network of parallel chains known as the Polkadot Relay Chain. Recently, Hyperbridge, a cryptoeconomic teamwork for trustworthy interoperability based on consensus and proofs of storage, declared its debut on the Polkadot platform. The purpose is to facilitate smooth cross-chain transactions of assets.
Hyperbridge is one of the most innovative applications on @Polkadot and I’m super excited for it.
Instead of relying on costly Zero-Knowledge proofs, we can leverage the robust messaging infrastructure provided by Polkadot cores for swift and secure communication between layer 2 networks directly.
— asynchronous rob (@rphmeier) November 8, 2024
By introducing Hyperbridge onto the Polkadot platform, users now gain entry to services offered by other connected networks such as Ethereum, Optimism, BNB Chain, and more.
Some significant initiatives utilizing the Polkadot network for cross-chain interaction, such as 21.co and Ankr’s liquid staking, are worth mentioning. This diversity of projects contributes to a growing number of over 1.3 million network holders, with approximately 848 million DOT tokens locked in to maintain the ecosystem’s security.
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2024-11-08 16:48