Polkadot Drops Below $40, But Fundamentals Support Rise - Forex News by FX Leaders
Polkadot Drops Below $40, But Fundamentals Support Rise

Polkadot Drops Below $40, But Fundamentals Support Rise

Posted Wednesday, April 7, 2021 by
Arslan Butt • 1 min read

After touching an all-time high over the last weekend, Polkadot has undergone what looks like a correction, with prices slipping below the $40 level which was holding as support earlier in the day. At the time of writing, [[DOT]] is trading around $39.

While Polkadot prices are holding somewhat steady for now, the key support level was a crucial one as a break below $40 can send the digital currency tumbling down to as low as $37. On the other hand, stronger interest among buyers can comfortably drive prices above $42, but the ATH is likely to offer strong resistance, preventing too strong an uptrend immediately.

The fundamentals side remains strong in the near future, with USDT – the largest stablecoin by market cap, is set to dip its toes into the Polkadot ecosystem via Kusama, its canary network. As it works towards rolling out a multi-chain network offering, this development with Tether promises users higher value through the possibility of increased scalability, affordability and stability.

Not only this, the Tether compatibility is likely to make Polkadot’s blockchain network a more attractive option for DeFi even as Ethereum remains wrought with challenges related to high gas fees, network congestion and uncertainty about upcoming network upgrades. With USDT, upcoming and current DeFi projects can propel the value of DOT higher by making its blockchain network far more attractive as an alternative to Ethereum.

This development supports our forecast for Polkadot which estimates room for further bullishness in this cryptocurrency in the coming months.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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