Crypto NewsPolkadot (DOT)

Polkadot up 8% in the last 24 hours thanks to its Dev’t activity, the growth of the NFT ecosystem

By leveraging relationships with parachains polka dots be able to expand the capabilities of its ecosystem and reach new heights. Moonbeam Network and its subsidiary Moon River recently partnered with bifrost merged.

There is hope for Polkadot, and here is a quick article on how the crypto has fared: The price of the DOT has increased due to some major changes on the chain. However, according to the indicators, the negative outlook remains intact.

Based on a recent tweet, the integrations not only improved liquid staking for GLMR and MOVRtokens, but also led to a dramatic increase in developer engagement within the ecosystem.

This, as this tweet confirms, has catapulted Polkadot into the ranks of the most active blockchains.

We’re excited to announce that $vGLMR & $vMOVR Liquid Staking is Live on Bifrost!🌈

Thanks to the @Polkadot #HRMP channel and high-yield vToken derivatives, the @MoonbeamNetwork and @MoonriverNW communities can look forward to increased token liquidity and rewards:

— Bifrost (@bifrost_finance) November 21, 2022

During the same period, sales of NFTs, which indicates progress for Polkadot in this area as well. CoinMarketCap is reporting an 8 percent price increase in DOT over the past 24 hours as a result of these events. However, can DOT keep up this pace?

Optimism lingers for DOT

While there’s little doubt that ecosystem trends are encouraging, several signs suggest investors could get carried away. We can deduce from the fact that the MFI numbers are falling that the current price action is not a solid rally for DOT.

An exciting integration into the Dotsama ecosystem! 🎉@bifrost_finance is offering something unique for @MoonbeamNetwork and @MoonriverNW parachains! 🚀

Liquid staking for $GLMR and $MOVR tokens. 🪙
Watch the video to learn more: ⬇️

— Polkadot Ecosystem PromoTeam (@PromoTeamPD) November 22, 2022

The token was previously rejected at $5.43, which was the price level breached by bears in the previous few days. Not to mention the bearish crossover of the RSI indicators. A Bollinger Band compression zone also amplifies this rejection.

The current support at $5.18 is a bit fragile as it could allow bears into the market and wipe out any gains for DOT today. The EMA band is also flashing red, indicating that short DOT positions are significantly more lucrative than long positions.

Polkadot up 8% in the last 24 hours thanks to its Dev’t activity, the growth of the NFT ecosystem, Crypto Trading News

Image: TradingView

This is reflected in CoinGlass as the cryptocurrency tracker indicates that the majority of investors and traders are short rather than long the token.

Chaikin’s money flow index is similarly bearish at -0.05, confirming that a positive trend reversal for DOT is not likely at this time, but could occur in the future.

Polkadot Price Prediction

Surprisingly optimistic ecosystem trends don’t necessarily translate into real benefits. Such is the case with DOT as technical indicators do not confirm the recent history of sunshine and rainbows.

Investors and traders should exercise caution with DOT. If the price fails to break the $5.43 ceiling, a retest of the existing support at $5.18 is likely.

Polkadot up 8% in the last 24 hours thanks to its Dev’t activity, the growth of the NFT ecosystem, Crypto Trading News

DOT total market cap at $6.12 billion on the daily chart | Featured image from The Coin Republic, chart:

Source: Crypto News Deutsch

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