Weekends are usually slow in crypto. Not much happens, but we do have some coins pumping and outperforming other altcoins.
One of those is Polkadot. The DOT price is up 10% today, and considering we’re talking about a top 15 coin here, any double-digit pump is worth noting. Let’s dig in…
Polkadot (DOT) Price Chart Analysis
In mid-March, DOT’s price hit a 2024 yearly high of above $11. However, since then, we can see on DOT’s chart that the price was trading in a descending channel.
With today’s 10% pump, DOT is now trading around $6.25 and has managed to break out of this channel.
When coins break out of a long-term channel, it might signal a reversal period.
Source: TradingView
The main concern with DOT’s price is that it’s almost 90% away from its all-time high (ATH), set during the 2021 bull run at $55.
It’s becoming increasingly difficult to believe that DOT will revisit the ATH area again this bull run. However, this doesn’t mean the coin isn’t tradable or can’t provide profits to traders.
In this week’s market crash, the Polkadot price plunged all the way to $5, a seven-month low. However, the price has recovered nicely from there.
Before today’s pump, the MACD line crossed above the MACD signal line, which is a bullish sign. The RSI is hovering around 57, so there’s still room for growth.
If overall market sentiment remains positive as it has in the last 48 hours, DOT’s price might revisit the $10 area in the upcoming weeks, and potentially break a new yearly high.
As mentioned earlier, the ATH is still far away, and a new one for DOT this year seems unlikely.
Read also: JasmyCoin Outperforms Other Altcoins Again – Will JASMY Price Rally Continue?
Did On-Chain Metrics Propel DOT Price Up?
A Twitter account that goes by the name “DotLake” often analyzes Polkadot’s metrics.
They reported that Polkadot had 33% growth in the number of transactions in June compared to May.
2/ Number of Unique Accounts was stable at 7M with Mythos’ strong entrance bringing in 800k new accounts, and from what we hear of what’s to come, that’s just the tip of the iceberg (you know, where the live… @pudgypenguins). pic.twitter.com/H0fYq8gfYP
— DotLake (@dotlake_xyz) July 5, 2024
The number of new accounts was also “stable” as around 7 million new ones were created last month. Over 850 million DOT tokens were staked during this period.
Network metrics can often positively affect a native coin’s price. Since DotLake’s report came in on Friday, DOT’s price has actually pumped over 20% from its $5 lows. So, there might be a connection there.
Conclusion
To sum things up – DOT’s price pump is noteworthy, but it’s not something Polkadot enthusiasts should be too excited about considering how far DOT still is from its ATH and even its yearly high.
That being said, on-chain metrics do look promising and could help the price recover even more in the upcoming weeks.
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