Polkadot, a cryptocurrency flying under the radar, has been quietly accumulating without reaching double-digit prices since May 2022. This extended accumulation period hints at the possibility of a bullish breakout, particularly with anticipated fundamental upgrades.
Ahead of the 2021 bull run, the Polkadot ecosystem conducted a parachain auction, influencing the price. Now, with the introduction of Polkadot 2.0, a revamped ecosystem, there’s anticipation for another positive bull run. The difference lies in the upgraded features and improvements brought by Polkadot 2.0.
Polkadot 2.0 Upgrade: Network Boost and Price Action
The recent upgrade of the Polkadot network, known as Polkadot 2.0, focuses on improving speed, safety, and adaptability. Developers emphasize efficient resource allocation, introducing a new system to attract more projects to the ecosystem. The network adopts Nominated Proof-of-Stake (NPoS), allowing holders to nominate validators. Cross-chain compatibility and on-chain governance are additional key features.
Polkadot’s native token, DOT, experienced a notable rally, surging over 150% from $3.5 to $9.57. However, the price faced resistance at $10, leading to a significant pullback below $7. The ongoing retest may persist for some time before triggering a healthy rebound toward the highs observed in 2023.
Polkadot (DOT) Price Analysis: Retest and Potential Rebound
Considering the ongoing price action, DOT is currently undergoing a retest, with the RSI signaling a bearish trend. The immediate support at $6.43 is vulnerable, and a breach could lead to a descent towards the lower support at $5.80. While a rebound is anticipated at these levels, a failure by the bulls might result in a drop to the support zone between $4.67 and $4.76.
Despite these short-term challenges, a healthy rebound is expected, with the potential to reach new highs. However, a critical resistance lies at $8.6, and only a successful breach would pave the way for DOT to achieve a double-digit valuation.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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