Polkadot (DOT / USD) price was in a tight range on Tuesday as interest in cryptocurrencies rose again. The price of the coin is $ 20.50, which is about 97% below its lowest level in July. As a result of this rally, the market capitalization rose to more than $ 20 billion, making Polkadot the 9th largest coin in the world.
The Polkadot recovery rally is fading
Polkadot is a rapidly growing ecosystem developed by Gavin Wood who was also the co-founder of Ethereum. The platform is similar to Ethereum in the sense that it helps developers build decentralized applications. Some key differences are that it was built from the ground up using proof-of-stake technology and that it was one of the first digital platforms to use sharding.
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Polkadot has several key components, the heart of which is the relay chain. The other key components of the polkadot ecosystem are the parachains, parathreads, and threads. In July, the developers started the first Parachain auctions, which resulted in five winners. Polkadot’s proof-of-stake consensus is made up of nominators, validators, reviewers and “fishermen”.
In the last few months further projects have been started in the Polkadot network. The front runners include Kusama, Chainlink, Ontology, Ankr and renBTC. These are some of the most popular blockchain projects in the world. Developers love the Polkadot ecosystem for its high speed and low cost.
Polkadot price was in a strong uptrend after finding strong support at $ 10.37 in July. This rally came as investor interest in digital currencies picked up after the slump in recent months. Other coins have rallied significantly as well, with Bitcoin rising $ 16,000 in the past two weeks.
Ethereum, on the other hand, has almost doubled from a low of $ 1,700 to over $ 3,200. This price action shows the close correlation between the digital currencies.
Polkadot price prediction
The 4-hour chart shows that the DOT price has been in an uptrend for the past few weeks. The price has moved above the ascending trend line shown in black and also above the 25- and 50-day moving averages.
It has also risen above the major resistance at $ 17.70 while the MACD formed a bearish divergence pattern. There is therefore the possibility of a short-term decline. If so, the next major level would be support at $ 17.70. On the other hand, a rise above $ 22 would end the downtrend.
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