Polkadot (DOT) Gears Up to Outshine Rivals Solana and Avalanche in 2024

• Polkadot’s price surged 48% in 30 days, now trading at $8.13, but faces resistance near $9.2.

• DOT’s recent bearish trend might reverse with dropping Open Interest, signaling possible price uptick.

Polkadot (DOT) has made a name for itself with a substantial price surge in the last 30 days. According to data, DOT recorded a remarkable 48% increase during this period, propelling it into the ranks of the top cryptocurrencies by market capitalization.

Currently trading at $8.72 and boasting a market capitalization exceeding $11 billion, DOT has captured the attention of both traders and enthusiasts. Polkadot’s native cryptocurrency has shown resilience, with a gain of more than 6% in the last 24 hours, reaching $5.50 from its previous lows of $3.50.

Analyst Perspective: Clean Path vs. Resistance Levels

Tony, a cryptocurrency analyst, has highlighted a significant difference between Polkadot and a couple of its rivals, Solana (SOL) and Avalanche (AVAX). Polkadot seems to have a clearer path ahead of it, at least in terms of resistance, whereas SOL and AVAX have run into resistance levels in recent price movements.

#Polkadot $DOT the bull run has only just begun

Compared to $AVAX and $SOL$SOL has reached the second resistance$AVAX has reached the first resistance$DOT has not yet reached first resistance

As we can see #DOT has a longer run and is a better buy because of the bullish run pic.twitter.com/yT3kSwHAvk

— Tony ₿itcoin⚡ (@Toni_Bitcoin) December 31, 2023

But a closer look raises some questions about this seeming straight line. Upon closer inspection, Polkadot’s liquidation heatmap shows two distinct spikes in liquidations: one at $9.2 and the other at $8.6. Prices have declined due to these events, indicating that surpassing these levels would be trickier than first thought. DOT must thus overcome these obstacles to start a bull market in 2024.

Open Interest and Its Impact on Price

Polkadot’s price behavior throughout the last seven days has been marked by a notable 4% fall. Even if this decline might seem depressing, there is a bright spot: the decline in open interest. A decline in open interest frequently portends a trend reversal and a prospective price increase.

Polkadot’s funding rate has remained strong despite the price decrease, which is noteworthy and highlights the company’s attractiveness in the derivatives market. These opposing signs point to some degree of volatility in the price swings of DOT going forward.

Examining Polkadot’s technical indicators, we can see that multiple bearish indications have surfaced. The cryptocurrency price has crossed over the Bollinger Bands, indicating a bearish crossover, according to its MACD. In addition, the Relative Strength Index (RSI) for DOT has been trending lower, raising the possibility that the decline will continue in the near future. With DOT’s price trading above significant moving averages, it is showing strength.

Web3 Foundation’s Real-World Investment

Shifting our focus to fundamental developments, the Web3 Foundation, closely associated with the Polkadot network, has taken a step toward real-world asset allocation. On November 29, the Web3 Foundation announced its $1 million investment in US Treasury bills, which they had tokenized on-chain using Anemoy.

Anemoy is a Polkadot parachain operator on the Centrifuge Chain, prioritizing real-world assets (RWA). The foundation’s investment is going to Anemoy’s Liquid Short Treasury Fund to expose DAOs and other investors to short-term yields on US Treasury bills. This effort demonstrates the Web3 Foundation’s commitment to fostering the expansion of tangible assets within the Polkadot ecosystem.

While Polkadot’s recent price performance has garnered significant attention, this move towards real-world asset integration highlights the network’s commitment to bridging the gap between blockchain technology and traditional financial markets.

Source