Today, the one who stands out among the 10 largest in the crypto market is Polkadot, capable of reaching a historical maximum of $ 12.88 a few hours ago, and with a bullish behavior that at the moment shows no signs of exhaustion.
At the time of writing, DOT is trading at $ 12.48, accumulating a gain of 35.69% in the last 24 hours.
What made Polkadot set a new all-time high?
There is an important reason behind the DOT rise, in addition to what the price action had been warning us about.
The great attraction of this blockchain currently is the scalability that it can offer, through smart contracts in an ecosystem of small blockchains called parachains.
This design makes Polkadot a good competitor against the Ethereum network, and most importantly, offers a platform that allows a good development of decentralized applications, better known as DeFi.
It is the high expectation of DeFi growth in the near future that is driving further adoption of the Polkadot network, which copes with a congested Ethereum network with high transaction fees.
DOT price technical analysis
When we went to the price charts we noticed that the behavior of DOT was quite encouraging, and it continually indicated that the rise would continue.
On January 7, Polkadot had reached an all-time high after a bullish rally that was beginning to cool. Quickly a correction started, but at no point was it a drop that showed worrisome signs.
Following a pullback to a low of $ 7.16, the bulls turned back and began to take control of intraday trends. The weekly chart told us that sooner rather than later the dominant force would drive the price to a new high.
Today we see a clear upward trend in the medium term, composed of increasingly higher lows and highs.
The current momentum is developing, and it might just be starting. It is a matter of continuing to monitor in case you want to wait for a correction and continue in favor of the trend.
Polkadot price weekly chart. Source: TradingView.
DOT short-term trend
On the daily candlestick chart we saw the bears temporarily taking over, but their strength was not comparable to the previous bullish rally.
Thanks to this, Polkadot buyers quickly returned. Yesterday with a single candle they managed to eliminate all losses and even mark a new all-time high.
Today the bullish intention continues, and although the momentum is quite developed, there are not many signs of exhaustion to predict an early onset of pullback.
Daily chart of DOT vs USDT. Source: TradingView.
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