The price of Polkadot (DOT) posted a strong performance in July as crypto prices rebounded. DOT has rallied for the last seven consecutive days and is now at its highest level since June 10th. The cryptocurrency is up over 44% from its lowest level this year.
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Polkadot registered a strong performance in July
Polkadot is a blockchain project launched by Gavin Wood, a co-founder of Ethereum. It is a network of multiple blockchains known as parachains. They are connected by the Polkadot Relay Chain. At the same time, it is possible to transfer assets to and from other blockchain networks such as Ethereum and Cosmos Hub with the help of so-called bridges.
Polkadot’s operators have continued to expand the ecosystem in recent months. Unlike other blockchains, Polkadot works with a concept known as sharding. Various activities are distributed across the parachains we mentioned above. In this way, transactions can be carried out faster and cheaper. In this process, users have the opportunity to vote for different Chains and provide them with liquidity. The most popular projects in the Polkadot ecosystem are MoonBeam, MoonRiver, Astar Network and Acala Network.
The Polkadot ecosystem has several important players. For example, validators secure the relay chain by staking their DOT coins, while collators maintain the shards. This involves collecting shard transactions from users and generating proofs for validators.
Polkadot performed strongly in July as Bitcoin and other altcoin prices rebounded. Bitcoin jumped above $24,000 for the first time in months, while the Ethereum price reached more than $1,700. This rally took place partly because many investors returned to DeFi platforms and staked their coins again.
Another reason for the price increase was the introduction of Gov2, which is a new governance system for the blockchain that aims to solve many current problems. Many changes are planned, including lowering hurdles for users so that there are no longer “first-class citizens” on the platform. For a proposal to go through, it currently needs to be approved by the Council (Council) and the Technical Committee (Technical Committee).
Polkadot Course Forecast
The daily chart shows that the DOT price has been in a strong downward trend over the past few months. More specifically, the coin has fallen about 88% from its peak in 2021. However, it has recently found a strong support at $5.9451. Polkadot has also managed to rise above the 25-day and 50-day moving average lines. The two lines are about to cross.
Polkadot’s price also managed to move above the important resistance at $8.4100, it was the highest level since June this year. Therefore, it looks like the coin is likely to rise further as the bulls set their sights on the key resistance at $10. This price is about 15% above the current level.
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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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