Why We’re Bullish About Polkadot’s Prospects in the Coming Months

Polkadot (DOT) is on the climb early on Friday, enjoying attention amid the bullish mood in the altcoin market even as investors remain hopeful about its prospects in the cross-chain space with its innovation of parachains. At the time of writing, DOT/USD is trading at around $22.03.

On the technical front, Polkadot’s native token has been making higher highs, a clear sign of a continuation of the latest uptrend. DOT is expected to continue on higher as long as the market sentiment supports more buying across the board. As we head into the weekend, all price action could be driven by moves in market leader Bitcoin – as long as it holds above $45,000 and tries to rise, cryptos can remain bullish.

On the fundamentals’ side, Polkadot’s Web3 Foundation announced on Thursday that it had extended support to over 300 projects within its ecosystem through its grants program. In 2020, it had touched the milestone of 100 projects, which rose to 200 by the beginning of this year and has now crossed the 300 mark. This is an indicator of the growing interest in the blockchain network among developers, especially as it offers interoperability among multiple different blockchain networks.

Polkadot’s Co-founder, Rob Habermeier, is optimistic for the future even as the concept of parachains is in the early stages, especially after the conclusion of its first round of auctions on the canary network, Kusama. In addition to interoperability, the potential Ethereum killer also promises higher levels of security which would make it more attractive for DeFi projects.

Key Levels to Watch

While the long-term prospects of Polkadot look bullish, the 4-hour chart of DOT/USD also reveals a strong bullish bias among the moving averages as well as MACD. However, the momentum indicator does point to some selling interest at the moment as well.

The price has broken past the pivot point at $19.395 and the first resistance level at $21.95. A continuation of the bullish mood can lead DOT higher, to test resistance at $24.249 and then at $29.10 before it can break above the key $30 level.