Final week we noticed Polkadot’s native cryptocurrency DOT pull off its sharpest bullish pivot since July. It’s thus unsurprising that analysts may count on or hope for an additional main rally particularly after it just lately retested its decrease vary.
Right here’s AMBCrypto’s worth prediction for DOT
However are DOT rally expectations nonetheless grounded in actuality particularly given the continued financial considerations? Maybe a good demand shift may help DOT’s continued upside.
Polkadot just lately introduced the launch of nomination swimming pools. However how does this have an effect on DOT’s demand?
Now that nomination swimming pools are stay, you’ll be able to stake natively and earn rewards with as little as 1 DOT!
Native, protocol-level nomination swimming pools signify a significant innovation within the broader blockchain business, making staking accessible to all, even these with much less tokens. pic.twitter.com/YJjZkC0qDM
— Polkadot (@Polkadot) November 1, 2022
In response to Polkadot’s official announcement, the nomination swimming pools will enable DOT holders to stake and earn rewards. This incentive may encourage extra 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 buyers’ curiosity is rapidly flowing again and this may result in extra 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. Properly, this end result means that there was a powerful accumulation within the final two days.
DOT worth motion
A fast take a look at DOT’s worth motion reveals another excuse why the bulls want to come again so quickly. The cryptocurrency simply concluded a 17% rally after bouncing again from October lows in the course of the end-of-October rally.
A little bit of a sell-off typically follows a large upside and DOT’s draw back within the final three days displays this expectation. Nevertheless, the draw back pulled again to the 50-day shifting common which frequently acts as a pivot level.
As well as, the most recent draw back has triggered a retest of the 50% RSI degree, one other indicator that buyers typically use as a pivot zone.
The convergence of those indicators, plus the announcement concerning the nomination swimming pools contribute to extra likelihood of a pivot. Whereas the chances of a bullish takeover stay excessive, you will need to be aware that, at press time, the market was experiencing pre-FOMC jitters which can have affected DOT’s potential upside.