- Summary:
- What is the outlook of the Polkadot price? We explain why the coin’s recovery faces a major hurdle going forward.
As the network expansion continues, the Polkadot price has been steadily upward in the past few days. DOT is trading at $19.15, about 12% above the lowest level this week. It is also hovering near the highest level on April 10th. Other coins like Ox, Kusama, and GMT have also bounced back recently.
Polkadot price is rising after the developers launched the low priority v0.9.19. One of this upgrade’s features was the introduction of XCM messaging protocol. However, the idea of this upgrade is relatively simple. At its core, Polkadot implements Substrate’s forkless upgrades, meaning that the business logic of the network can only be upgraded using governance.
XCM messaging will make it easier for cross-chain communication. It was already enabled in Kusama’s platform for a while. Another feature is that Polkadot will now become an evolving organism.
The Polkadot price has also risen because of the strong performance of its ecosystem. For example, last week, Terra announced that it would launch on Acala, one of the biggest platforms in the ecosystem. This was a notable thing considering that Terra is one of the biggest networks in the industry.
In addition, Acala and VCs also committed $250 million to expand the network. At the same time, the Moonbeam and Moonriver total value locked has jumped to $167 million and $267 million, respectively.
Polkadot price prediction
The DOT price has made a bullish comeback in the past few days. It has risen by about 12% from its lowest point this week. The coin has risen above the 50% Fibonacci retracement level. The 25-day and 50-day moving averages have made a bullish crossover pattern, while the Stochastic Oscillator has moved slightly below the overbought level. Also, it remains slightly below the ascending trendline shown in green.
Therefore, the outlook of the Polkadot price at this point is neutral. However, a bullish breakout will be confirmed if the price moves above this descending trendline. If this happens, the next key level to watch will be at $20.25. On the flip side, a drop below $18.30 will invalidate this view.
