Polkadot Price Analysis: DOT Hits New All-time High Above $50 Amid Increasing Network Functionality
The Polkadot price has risen 14% over the last 24 hours as DOT hit a new all-time high at $50.87. The Polkadot network moves toward increased functionality as parachains loom.
The Polkadot price rallied approximately 24% on Monday to register a new record high at $50.87, rising above the $49.35 May record high.
Increasing functionality of the Polkadot blockchain network provides the hind wind propelling the DOT bullish run.
Parity technologies, the company behind Polkadot announced that “parachains” were coming to the network on October 13. Parachains (parallel blockchains) refer to full blockchains that will be incorporated into the Polkadot blockchain network to aid in validating and securing transactions. Polkadot’s aim is to increase the interoperability of blockchain networks hence becoming the blockchain for blockchains. This will make the Polkadot network a layer-zero protocol.
After the announcement, the demand for Polkadot increased as both the DOT price and trading volumes skyrocketed. However, prior to yesterday, the price was held in a tight price range between $40 and $45.
Polkadot Price Rallies 14% To Set New Record Highs
DOT price bounced off the demand zone (green band) at $40.56 at the end of the weekend as illustrated by the long lower wick on Sunday’s candlestick. This is an indication that investors were getting in on the dips.
This bolstered the DOT bulls on Monday who have pushed the Polkadot price 14% upwards over the last 24 hours. A rally that saw the asset hit a new record high at $50.87.
DOT/USD Daily Price
The bears, however, are determined to pull the DOT price down. If Polkadot turns down from the current price around $48.56 it will find support at the $46.30 level.
Therefore, expect DOT to take a breather at the end of the supply zone at $46.30 after which a resumption of the upward movement to new record highs above $50 will be the next logical move.
On the downside, a slip below the $46.30 level could see the Polkadot price drop to tag the 50-day SMA at $36.76.
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