Last week we noticed Polkadot’s native cryptocurrency DOT pull off its sharpest bullish pivot since July. It is thus unsurprising that analysts may count on or hope for one other main rally particularly after it just lately retested its decrease vary.
Here’s AMBCrypto’s value prediction for DOT
But are DOT rally expectations nonetheless grounded in actuality particularly given the continuing financial considerations? Perhaps a good demand shift may help DOT’s continued upside.
Polkadot just lately introduced the launch of nomination swimming pools. But how does this have an effect on DOT’s demand?
Now that nomination swimming pools are dwell, you may stake natively and earn rewards with as little as 1 DOT!
Native, protocol-level nomination swimming pools characterize a significant innovation within the broader blockchain trade, making staking accessible to all, even these with much less tokens. pic.twitter.com/YJjZkC0qDM
— Polkadot (@Polkadot) November 1, 2022
According to Polkadot’s official announcement, the nomination swimming pools will permit DOT holders to stake and earn rewards. This incentive may encourage more demand for DOT. The cryptocurrency’s social dominance and social quantity registered a large uptick on the identical day of the announcement.
The social metrics increase appears to have steered the market in favor of the bulls. We additionally noticed a surge in DOT’s weighted sentiment to its highest weekly worth. This means that traders’ curiosity is shortly flowing again and this may lead to more upside within the subsequent few days.
DOT’s market cap grew by over $186 million within the final 24 hours at press time on account of the sentiment shift and liquidity flowing again into DOT. Well, this end result means that there was a robust accumulation within the final two days.
DOT value motion
A fast take a look at DOT’s value motion reveals one more reason why the bulls are trying to come again so quickly. The cryptocurrency simply concluded a 17% rally after bouncing again from October lows throughout the end-of-October rally.
A little bit of a sell-off usually follows a large upside and DOT’s draw back within the final three days displays this expectation. However, the draw back pulled again to the 50-day transferring common which frequently acts as a pivot level.
In addition, the newest draw back has triggered a retest of the 50% RSI stage, one other indicator that traders usually use as a pivot zone.
The convergence of those indicators, plus the announcement concerning the nomination swimming pools contribute to more likelihood of a pivot. While the chances of a bullish takeover stay excessive, it is essential to observe that, at press time, the market was experiencing pre-FOMC jitters which can have affected DOT’s potential upside.