Assessing the odds of Polkadot’s [DOT] rally this week
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polka dot pattern [DOT] wasn’t at its best last week, registering just a 2.5% seven-day gain. However, the growth was still promising, as the entire crypto market was struggling to go green.
There have been several recent positive developments in the DOT ecosystem, which may have fueled this growth. One of them is the launch of Tether in the Polkadot ecosystem.
This development attracted the attention of many, making it the most successful coin on September 24 in terms of social activity.
— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) 24 September 2022
While DOT’s performance was negative at the time of writing, several metrics across the chain suggested that better days are ahead. At press time, DOT was trading at $6.34 with a market capitalization of $7,100,453,221.
Are better days coming soon?
Polkadot’s weekly summary report revealed several positive developments in the community that can fuel POINTthe next bull rally.
The most significant was the introduction of the Tether stablecoin in the Polkadot network. Besides DOT, Tether also works on other blockchains including Avalanche, Kusama, Ethereum, Solana, Algorand, EOS.
💠@Tether_to starts up @Pallokuosi;
💠To be continued @AcalaNetworkoperation;
💠Turing Network by @oak_network remove SUDO;
💠 Spacewalk over @heiluri_ketju is coming;
💠@wormholecrypto starts up @MoonbeamNetwork;
💠Mosaic realignment @ComposableFin;https://t.co/d5LnUNVqDv
— Polkadot News ️ (@polkadotnews) 25 September 2022
All these positive developments give investors hope for brighter days ahead. Interestingly, Crypto Santa, a popular crypto analyst on Twitter, noted that DOT was trading slightly above its historically significant support at $6.
In his analysis, he noted that if the DOT cuts its subsidies, investors’ hopes may be dashed as it may further lower its price.
Request #1: $DOT
Trading slightly above a historically significant support level, if #POINT loses the $6 level, it will likely experience a massive sell-off! 👀‼️
– Crypto Santa (@Blockchainsanta) 25 September 2022
A look at the gauges
However, a look at the DOT’s gauges revealed a different story as most of them were supportive of higher prices in the coming days.
For example, DOT’s development activity increased significantly in the last month, but decreased slightly, which is generally a positive indicator.
DOT’s social volume has also increased recently, indicating increased investor interest in the token. Not only that, but DOT’s NFT space is also registering some interesting movements.
Data from CryptoQuant revealed another major bullish signal. POINT‘sThe Relative Strength Index (RSI) and stochastics were in an oversold position.
This development indicated that DOT’s next northward eruption may occur sooner than expected. Taking into account all the positive developments in the chain’s indicators, it is most likely that the DOT will register an increase in the coming days.