DOT Price Jumps 6% As Polkadot Announces On-Chain Treasury Investments

December 1, 2023

Senior Journalist

Expertise : Cryptocurrency, Blockchain, Macro Finance

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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DOT, the native cryptocurrency of the Polkadot ecosystem is making strong moves gaining more than 6.25% in the last 24 hours and trading at $5.50 levels. The DOT price is undergoing a trend reversal from its lows of $3.50, experiencing a notable surge of over 55%. Additionally, the price action indicates significant efforts by buyers as they target the $6.00 mark.

DOT Price Can Rally to $7.0

Technical indicators suggest that the DOT price has maintained its gains in neutral territory, with expectations of reaching the swing high point of $7.00 in the upcoming sessions.

Trading above crucial moving averages, the DOT price demonstrates strength. Furthermore, the current price action favors the bulls, indicating the potential for DOT to enter the blue sky zone above $7.00 and experience a significant surge in the next few sessions.

At press time, DOT is trading at $5.5 with its 24-hour trading volumes jumping by 51% to $288 million. The observed price action also reflects investors’ interest and commitment to maintaining a bullish sentiment. Currently, DOT is trading very close to its previous rejection levels of $5.73.

The RSI curve remained in the overbought zone, forming a positive divergence that hints at the potential to reach the blue sky zone around $7.00 in the near future.

Conversely, the MACD indicator also indicates a bearish crossover along with red bars on the histogram, pointing to a potentially volatile outlook in the upcoming sessions.

Polkadot’s Web3 Foundation Invests In US Treasuries

The Web3 Foundation, associated with the Polkadot network, has joined the trend of crypto development teams allocating treasury assets to real-world assets. In a recent announcement on November 29, the Web3 Foundation also revealed plans for a pilot investment of $1 million in U.S. treasury bills, tokenized on-chain through Anemoy.

Anemoy operates on Centrifuge Chain, a Polkadot parachain focusing on real-world assets (RWA). The investment is directed towards Anemoy’s upcoming Liquid Short Treasury Fund, aiming to provide DAOs and other investors with exposure to short-term U.S. treasury bill yields. This move underscores the Web3 Foundation’s dedication to supporting the growth of real-world assets on Polkadot’s infrastructure.

“This partnership demonstrates Web3 Foundation’s commitment to supporting the growth and innovation of real-world assets on Polkadot’s infrastructure,” the Web3 Foundation said. Additionally, Polkadot is working on a system to replace the parachain auctions.