Polkadot pumps 6.53% but is the token now bullish?
Polkadot surged the most among cryptocurrencies in the top 20 category
Santiment data shows a rise in projects building on the Polkadot ecosystem
The token faces an immediate resistance
Polkadot DOT/USD rose more than 6% in 24 hours on Tuesday. The gains were the highest among cryptocurrencies in the top 20 categories. Most tokens were showing sluggish recoveries, while others remained in the red zone.
No notable news was responsible for Polkadot’s gains which are largely a recovery from the recent dip. Nonetheless, Polkadot has been witnessing a surge in activity in the past one month. A Santiment data as of August 22 showed that Polkadot was the second in terms of development activity. A total of 400 development activities were recorded on the Polkadot ecosystem in the last 30 days. The top blockchain for the development activities was Ethereum, with 401 projects.
The high development activity on Polkadot suggests an increased demand that boosts the native token. While we cannot connect the latest recovery with the development activity, it could still be a bull trigger. Polkadot still has room to run if the latest rally is to be sustained.
Polkadot recovers but faces immediate resistance
Source – TradingView
From the daily chart, Polkadot is trading at $7.60, slightly below a key resistance at $7.9. The price is bullish although the MACD indicator remains below the moving average.
DOT is likely to continue surging short-term, but investors should anticipate resistance at $7.9. DOT has to clear the resistance to see long-lasting gains. Investors should watch for a breakout at the key resistance to add positions.
Summary
DOT remains subdued, but the price has recorded recoveries. Development activity has been surging in the past month. The token faces resistance at $7.9 with a potential to break higher.
The post Polkadot pumps 6.53% but is the token now bullish? appeared first on CoinJournal.
