Polkadot has been among the tokens which have been trading under the radar for quite some time. The bulls remain off the shore, as the price has been failing to reach a double-digit figure since May 2022. Hence, the prolonged accumulation may eventually result in a bullish breakout, which could be fueled by the fundamental upgrades.
Just before the 2021 bull run, the Polkadot ecosystem auctioned its parachain, which had a decent impact on the price. However, with the launch of an upgraded ecosystem, Polkadot 2.0, a new phase of a fine bull run may be expected. What’s the difference between Polkadot & Polkadot 2.0?
The upgraded network is mainly focused on increasing speed, safety, and adaptability. The developers here mainly focus on efficiently assigning resources. Therefore, a new system of allocation may eventually attract more projects to the ecosystem. Apart from this, the chain uses nominated Proof-of-Stake(NPoS) which allows holders to nominate validators. Alongside, cross-chain compatibility and on-chain governance are the other two major features of the platform.
How Will the DOT Price Be Impacted With This?
The DOT price has undergone a decent rally in the recent past, which elevated the price by over 150% from levels around $3.5 to as high as $9.57. However, before surpassing the crucial resistance at $10, a significant pullback occurred, dragging the price below $7 at the moment. The retest is expected to prevail for some more time, which may trigger a healthy rebound towards the 2023 highs.
Considering the current price action, the DOT price appears to be in the middle of a retest as the RSI continues to remain bearish. With this, the immediate support at $6.43 may be tested and broken at any time from now. This could pave the way for an extended descending trend towards the lower support at $5.80. A rebound may be expected at these levels, but if the bulls fail to do so, a drop to the lower support zone between $4.67 and $4.76 is imminent.
In any case, the Polkadot (DOT) price is believed to trigger a healthy rebound and head towards the highs. However, a pivotal resistance may hinder the rally at $8.6 and only if the bulls are able to breach through these levels, the token may achieve a double-digit figure.
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