Polkadot News: Is the DOT Coin Price Ready to Break the YTD High?

• Polkadot network uses shards to scale and connect private chains
• The DOT coin price is near the year-to-date high (YTD).
• The bulls got rejected from the immediate resistance level of $7.51.

Polkadot is a network built with Substrate which is a framework that enables the creation of custom or pre-built blockchains. It is scalable, secure, and decentralized. It aims to promote a fully decentralized web where users have control. 

The network uses shards to scale and connect private chains, public networks, and oracles, allowing independent blockchains to exchange data and transactions without trust. 

What is DOT?

The native token currency of the Polkadot network is DOT, which facilitates network governance, staking, reward incentives, transaction fees, and other processes. The network operates on public and private key cryptography, allowing funds to be sent from one digital wallet to another. 

Polkadot uses a sharded multi-chain network coordinated by a central Relay Chain, which processes data and transactions on several chains in parallel. It is known as Parachains. Its sharded architecture increases the throughput of commerce by allowing it to be processed in parallel on each shard.

Technical Analysis & Prediction of DOT Coin Price 

Polkadot, a highly robust blockchain network, has experienced significant growth this year, according to an end-of-year report by Parity Technologies. The network now boasts 50 Layer 1 blockchains, nearly 100 proposals, and over 100 million fee-paying transactions.

The growth of the DOT coin price was propelled by some popular parachains. The ecosystem recorded over 100 million transactions in the first ten months, translating to almost ten million transactions every month. 

Will DOT Coin Touch the $10 Mark?

Over the past week, the DeFi sector has seen a significant improvement as the token experienced a surge of 21.7%. Although Polkadot’s price dropped from its highest point at $7.59, it has still exhibited a 35.2% increase in the last 30 days, facing opposition at $7.90.

Currently, the DOT coin is looking for some rest. The immediate support level for the DOT coin is at the level of $5.75. The bears have rejected the bulls from the immediate resistance level of $7.51. 

Pivot	Classic	Fibonacci	Camarilla	Woodie
S3	2.092	3.660	5.042	3.121
S2	3.660	4.259	5.186	3.722
S1	4.567	4.629	5.329	4.689
P	5.228	5.228	5.228	5.290
R1	6.135	5.827	5.617	6.257
R2	6.796	6.197	5.760	6.858
R3	8.364	6.796	5.904	7.825

Therefore, the bulls will likely take support before taking off again. The 50-day EMA is arriving at near the immediate support level. As per the technical analysis, it is concluded that the DOT coin will be bearish,

Conclusion

Polkadot is a sharded multi-chain network with a central Relay Chain built using the Substrate framework. DOT coin’s growth relied on popular parachains. Technical analysis predicts a bearish trend for the DOT coin price.

Technical Levels

• Support Levels: $5.75 and $4.83
• Resistance Levels: $7.509 and $9.55

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.