Polkadot Price Rallies Over 5% as Altcoin Market Shows Bullish Trends
As Bitcoin
BTC
$81,325
24h volatility:
5.9%
Market cap:
$1.61 T
Vol. 24h:
$97.24 B
leads the altcoin market in a bullish breakout, Polkadot (DOT), an open-source sharded layer-0 metaprotocol enabling cross-chain transfer of data and assets, has indicated a potential rebound. This mid-cap altcoin has a fully diluted valuation of approximately $6.4 billion and a daily average traded volume of around $256 million, rising over 5 percent in the past 24 hours to trade at about $4.28 on November 8.
From a technical analysis perspective, DOT price
DOT
$5.27
24h volatility:
13.1%
Market cap:
$7.56 B
Vol. 24h:
$1.39 B
has formed a macro reversal pattern over the past year. On a weekly time frame against the US dollar, DOT has established a support level above $3.6, having retested this level three times.
In the daily time frame, DOT has broken out of a falling logarithmic trend, signaling the start of a new bull market. The weekly Relative Strength Index (RSI) shows a rising divergence. However, DOT has declined against Bitcoin and Ethereum for the past three years.
The bullish outlook for DOT will be invalidated if it consistently closes below the support level of approximately $3.6 in the near term.
$DOT is once again breaking out of the falling wedge pattern after a long downtrend..📈 Expecting up to 2x bullish rally in the coming days. #Crypto #Polkadot #DOT pic.twitter.com/44UtelMkq8
— Captain Faibik 🐺 (@CryptoFaibik) November 8, 2024
Why Bet on Polkadot in the Upcoming Altseason
The cryptocurrency market is entering a parabolic phase of the macro bull market, initiated by the fourth Bitcoin halving earlier this year. Institutional investors have aggressively accumulated Bitcoin, with a trend shift expected towards the altcoin market following the success of pro-crypto candidates in the United States.
This crypto fund rotation will favor top altcoins, evidenced by increased cash inflows into US spot Ether ETFs. Demand for utility coins, particularly in the DeFi sector, is anticipated to rise due to a potential reversal in Bitcoin dominance.
The Polkadot network has established itself as a leader in cross-chain interoperability through its parallel chains known as the Polkadot Relay Chain. The launch of Hyperbridge, a cryptoeconomic coprocessor for verifiable interoperability using consensus and storage proofs, enhances cross-chain asset transfers on the Polkadot network.
Hyperbridge is one of the most innovative applications on @Polkadot and I’m excited for it. We have a great coprocessor framework in Polkadot cores to transmit messages quickly and securely between L2s without needing expensive ZK proofs! https://t.co/HK0XUB228f
— asynchronous rob (@rphmeier) November 8, 2024
The launch of Hyperbridge allows users to access services from other supported networks, including Ethereum, Optimism, and BNB Chain. Other projects utilizing the Polkadot network for cross-chain connectivity include 21.co and Ankr liquid staking. The Polkadot network supports over 1.3 million holders, with more than 848 million DOT coins staked to secure the ecosystem.