Polkadot (DOT) Trades in a Range: Breakout Coming Soon?
Polkadot (DOT) is trading somewhat range-bound as we head towards the weekend, but technicals point to a breakout towards the upside coming up sometime soon. At the time of writing, [[DOT]] is trading at around $42.
For the second consecutive week, Polkdaot’s price remains within a tight range, remaining mostly unaffected by the recent rally in the crypto market powered by the news of Coinbase’s NASDAQ listing. However, as we mentioned in our earlier forecast, there is a possibility for the bullish trend to gain strength in the coming sessions, especially after the announcement of a new token on the blockchain network, PINT.
The upcoming Polkadot Index Network Token (PINT) has already received significant interest from the top projects running on the network and is expected to see a mainnet launch within the next three months. The PINT token will not only offer investors a balanced exposure to the Polkadot ecosystem by hedging the volatility of individual projects against the performance of the overall sector, and can be minted using DOT and traded on crypto exchanges upon launch.
The creators behind the PINT token expect it to be considered as a ‘treasury reserve asset’ functioning within the Polkadot blockchain network, and can lend a boost to the overall DeFi sector going forward. Approved protocols can contribute a percentage of their native asset treasury in exchange for diversifited index of assets within PINT.
Key levels of interest
Technical indicators point to a bullish trend in Polkadot prices in the near term. DOT/USD faces its next key resistance at 46 and a break above this can take it towards 58. However, if the resistance holds and selling pressure increases, DOT could weaken to as low as 35 and possibly even the 30 level in the coming sessions. However, expectations are that after trading for two weeks in a tight range, the price could easily break out of the range and rise as high as $70 going forward.
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