with Bitcoin surging past $20,000, altcoins like DOT (Polkadot) have been riding a broader crypto rally that began in early 2023. According to CoinGeckoThe token is trading at $5.94, and has risen more than 12% in the past 24 hours and 33% weekly.
This is attributed to market optimism caused by positive Consumer Price Index (CPI) data released Thursday. With the main component of the CPI becoming deflationary, the market can continue the sharp rally that started the year.
DOTs Connected
Polkadot, as an ecosystem, has become popular lately. according to HolyPolkadot has seen strong development activity in recent times, adding to the already bullish momentum in the overall crypto market.
Polkadot also achieved more than 1 million DOTs in the nomination pool, making on-chain staking more viable. Crypto.com also released a recently post about the current market. Polygon ranks 4th in TVL with a 5% change over the past seven days.
Image: Polkadot Insider
This can be attributed to on-chain developments and recent crypto market rallies. This includes improving macroeconomic trends. With the CPI dropping to 6.5%The DOT could resume significant hikes in the next few weeks or months if momentum continues.
Although some analyst pessimistic that this rally is for the long term, the overall on-chain The performance of the ecosystem will support the token and break further resistance.
Polkadot: To the Moon?
With the token’s current momentum, it is possible that DOT will continue to make higher heights. The DOT may be in a position to continue its climb. The token’s high correlation with major cryptocurrencies will also pull the token up.
With Bitcoin testing resistance at $21,422, the coin’s upward momentum will be a wave for DOT to ride in the next few weeks or months. This means that the token will benefit from improving macroeconomic trends.
In the short and medium term, DOT can break through the current $6 resistance price range to reassure investors and traders that the rally will continue.
DOT total market cap at $6.8 billion on the weekend chart | Chart: TradingView.com
With improving macros and an overall bullish outlook on crypto, DOT should be able to reach the $7 resistance easily. However, if BTC will enter a correction phase, the token may experience a brief loss of upward momentum.
Investors and traders holding DOT are now facing huge gains in the short term. With that in mind, token holders should keep an eye on the DOT chart as this high rally could face a tight correction phase.
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