The Polkadot price bucked the trend on Monday as the cryptocurrency meltdown continued. The DOT coin jumped to the highest level since May, bringing the total gains since July to more than 278%. The coin has a market capitalisation of more than $34 billion, making it the 8th biggest cryptocurrency in the world.
There is no particular news that triggered the sharp increase in Polkadot’s price. Therefore, my guess is that investors believe that the ongoing parachain auctions will be relatively successful, which will draw more interest towards the network. Indeed, DOT’s price rallied and bucked the trend during the previous auctions.
Another possible reason for the Polkadot price rally is the upcoming Cross-Consensus Messaging format known as XCM. XCM will be a format and not a protocol within Polkadot’s ecosystem. Its goal will be to be a language communicating ideas between consensus systems. Therefore, the launch of this format has likely drawn more investors into the network.
The daily chart shows that the DOT price has been in a strong bullish trend. And today, the coin managed to move above the important resistance level at $35.65, which was the highest level on September 7th.
The Polkadot price remains above the 25-day and 50-day exponential moving averages (EMA), meaning that bulls remain in control. At the same time, the Relative Strength Index (RSI) has moved above 50 while the price is above the Ichimoku cloud.
Therefore, the price will likely maintain the bullish trend as investors target the next key resistance level at $50, which is its all-time high. On the flip side, a move below the support at $28.68 will invalidate this view. This view is in line with my recent DOT price prediction for September.