Polkadot was showing downside pressure starting in November, even more so than the rest of the crypto market, as it continued to make lower highs and lower lows through February, printing a low of $14, while the market crypto stopped falling in January. But, since the beginning of March, there has been a lasting increase. This bullish move pushed the DOT towards its 2-month long resistance of $23.21.
Sentiment in the Bitcoin crypto market has seen some improvement over the past month. This price action not only pushed BTC to close above $44,600, but also helped it rally further to cross $48,000 on the charts. This helped altcoins and Polkadot was one of the beneficiaries as it also saw significant appreciation.
Polkadot Daily Chart – Will Resistance Be Broken Soon?
DOT returns to resistance after finding support at MAs
Polkadot ETPs Being Liton on Exchanges
Polkadot is a very energy-efficient blockchain compared to Ethereum and Bitcoin which consume millions of times more energy. Polkadot’s exchange-traded products (ETPs) listed on the Frankfurt Stock Exchange earlier this year. But there was no sign of life in DOT/USD until last month. New York-based exchange-traded products sponsor WisdomTree has announced that its Polkadot exchange-traded products have started shipping in France and the Netherlands after debuting in Germany and Switzerland earlier.
Wormhole Bridge Polkadot
Polkadot auctioned parachains at the end of 2021 which are supposed to connect it to other blockchains and form the basis of WEB3. Now, the Parachain Polkadot Acala and its Kusama-based counterpart, Karura, integrate with the Wormhole Cross-Chain Bridge. This will connect its decentralized finance (DeFi) ecosystems to 8 major layer-1 blockchains such as Ethereum, Solana. Terra, Binance, Avalanche, etc.
Now, thanks to cross-chain interoperability, users of Acala and Karura, which serve as DeFi hubs for Polkadot and Kusama, can access over $200 billion in liquidity. On top of that, 9 Polkadot parachain teams launched a $250 million ecosystem fund to support early-stage startups on Polkadot and Kusama-based dApps.
All of this improved sentiment for Polkadot, which has made decent gains since early March, pushing above the 50 SMA (yellow) that was acting as resistance on the daily chart. pushing the highs lower. DOT/USD also broke above the 100 SMA 9green0, but the previous support from January turned into resistance and rejected the price. Although the moving averages have turned into support and the DOT coin is now breaking above resistance, which shows bullish pressure, so further gains are expected.