The Polkadot price has been in a strong bullish trend in the past few weeks. DOT is trading at $26, which is about 150% above the lowest level in July. This brings its total market capitalization to more than $25.6 billion. It is the 9th biggest cryptocurrency in the world and is between USD Coin and Solana.
Polkadot and altcoin rally
The Polkadot price has rallied as the so-called altcoin season continues. In the past few weeks, the prices of most altcoins has jumped as interest in cryptocurrencies bounce. For example, Dogecoin, Cardano, and Solana have jumped by more than 25% in the past several days.
This performance has been driven by the fact that Bitcoin has managed to jump from below $30,000 to more than $48,000. There are also signs that more companies are thinking about cryptocurrencies. For example, Walmart and Amazon have recently advertised roles in cryptocurrencies.
At the same time, firms like Microsoft and Alibaba are said to be considering using Ethereum’s network to build anti-piracy products.
Meanwhile, interest in Polkadot has risen. For example, data compiled by CoinMarketCap showed that the volume of DOT traded on Monday rose to more than $2.6 billion. This was notable since it was the first time in two weeks that it crossed the $2 billion mark. It was also the highest figure since June 3.
Also, a quick look shows that more people are searching for Polkadot in search engines and writing about it in social media.
Polkadot price forecast
The daily chart shows that the DOT price found a strong support at $10.25 in July this year. It was the lowest level since January. Since then, the coin has made a strong recovery and moved above the 100-day and 50-day exponential moving averages. This is a bullish sign.
At the same time, the coin is approaching the key resistance level at $28.68, which was the highest level on June 3. In my view, this is the next level to watch. A move above this resistance will see the stock maintain its bullish trend as bulls target the key resistance at $35. A drop below $22.50 will cancel the bullish view.