The DOT price jumped strongly to the upside and marked a new all-time high, driven both by the general positivism in the crypto market, and the recent announcement of Coinbase Venture’s support for the development of DeFi on the Polkadot ecosystem.
Coinbase is the number 1 exchange in the North American cryptocurrency market, so the support of its investment branch is a great fundamental factor for the upward momentum to be fueled.
Investments will focus their attention on Acala, a decentralized financial hub that drives liquidity and cross-blockchain applications. It is building a DeFi ecosystem on Polkadot and is compatible with the Ethereum virtual machine.
Products that this application has created on the Polkadot network include a DOT liquidity pool, a stablecoin, an automated market maker, and a sovereign wealth fund.
DOT technical analysis after reaching a new all-time high
At the time of this writing, Polkadot is trading at $ 44.20, accumulating a gain of 11% in the last 24 hours.
When we look at the daily chart we notice how the bulls regained control of the price, after starting to make higher lows and highs from the surrounding demand zone at 30.
Now Polkadot after breaking the resistance at $ 38.80, managed to break out of a long lateral period, resuming a strong higher uptrend.
Today the DOT price after hitting an all-time high is showing some depletion. Although this does not tell us that there is a high probability that a correction is going to start soon, it is possible that we will see it due to how widespread the momentum is.
However, this is not the time to be waiting for sales. In case we see a drop, it will be nothing more than healthy profit taking. Sooner rather than later the demand of those who take advantage of discounted prices will lead the listing to new records.
In the weekly chart we notice a more than evident upward trend in the medium term. This told us how likely it was that the bulls surprised us just as they have been doing for the past few hours.
Today DOT has effectively resumed this trend, as I said, after picking up demand in the surrounding area at 31, but not because we are seeing a new all-time high does it mean that the momentum is exhausted.
When analyzing the time frame with weekly candles we can see that the price made a healthy correction towards just beyond the 50% Fibonacci. Now Polkadot is poised to build momentum to at least $ 50.50 as a first target. That target is likely to fall short, and the price proceeds to seek $ 60.50.
All our publications are informative, so in no case should they be followed as investment advice.