Summary
- DOT is attempting another go at the record price.
- Recent market developments have set a stage for an upward action.
- Institutional investment and interoperability to provide the strongest driving forces.
DOT continued with its attempt to retest the all-time high price, reaching a 24-hour high of $39.42 before settling at $36.29 at the time of this writing.
Having set a record-high price of $42.06 less than a month ago, Polkadot has recently come within touching distance of the $40 mark, which now seems to be a psychological barrier. However, DOT is still doing great, and going by today’s price, it has given investors a 300% increase in their investment since January.
Hoping against the recent trend
DOT is currently the sixth most-valuable cryptocurrency, going by its $33 billion market capitalization. It is down 2.02% compared to the previous 7 days’ price, and investors are counting on recent market developments to trigger a price upswing.
DOT price is set to gain from the impending deployment of a parachain called Statemint by Parity Technologies. The new parachain will enable the issuance of tokens by institutions on the Polkadot platform. In better news for investors, the move will lower the gas fees for users of the blockchain.
Rising investor confidence to fuel growth
Investor confidence in DOT is on the rise, with institutions focusing their attention on it as a viable competitor to ETH.
FD7 Ventures, one of the leading Polkadot institutional investors, continues to give a bullish outlook for the altcoin. The firm’s Managing Partner, Prakash Chand, this week projected that Polkadot is among three altcoins set for an exponential growth, alongside Bitcoin. In his forecast, he stated that Bitcoin is on course for a $10 trillion market capitalization, with ADA, ETH, and DOT “not too far behind.”
In his assessment Chand, who has been investing in Bitcoin since 2011, expects more people to invest in cryptocurrency in the next two years as a result of the crypto-market’s high returns. As a result, he expects the market cap of cryptocurrencies to rise.
Mr. Chand also says that FD7 Ventures has had an upsurge in inquiries from high-net-worth individuals and institutions about Cardano and Polkadot. This could be indicative of an impending increase in institutional acquisitions/adoption and individual purchases of DOT.
The strength of interoperability
In the news on Polkadot’s stranglehold on blockchain interoperability, Polkadot is set to be connected to Balancer. In the recent announcement by Moonbeam, the project is designed to bring on board the popular DeFi ecosystem to Polkadot. The Balancer-Polkdot ecosystem will certainly be an investor magnet since investors will be able to earn yield on their portfolios.
Polkadot’s strength in this segment has seen it rise by about 625% in just three months. Interoperability among blockchains has been embraced by the crypto-market due to its significantly lower gas prices. As a result, Polkadot’s parachains are seen as a viable threat to Ethereum.
Apart from the lower fees, Polkadot’s protocol has enabled the integration of several networks to work together efficiently on a wider scale. This has given it an edge over Ethereum and will certainly elevate DOT as an alternative investment to Bitcoin.
In another major milestone for Polkadot, the cryptocurrency was last week integrated into the Ledger wallet support system. In addition, Ledger, one of the world’s leading hardware wallets, will support staking for DOT.
Technical analysis
DOT prices will find the first support at $28.5 and the second one at $33.5. Most price action will be between $34.0 and $36.1. The DOT/USD pair will face the first resistance at $37.00, beyond which it will come up against a second resistance at $38.5. A break past this second barrier will signal that the bulls are in charge and may retest the $40 territory.
