- Polkadot is among a few top 100 cryptocurrencies in the green on Monday.
- Tether (USDT) minting on Polkadot blockchain returns DOT price in the limelight as investors take bullish positions.
- DOT price must break above a falling wedge pattern to validate a long-term bullish breakout.
Polkadot price is showing solid bullish strength on Monday after bears respected its support at $6.00. The parachains' token exchanges hands at $6.44 – and is among a handful of top 100 cryptocurrencies in the green. If volume continues to rise in its favor, DOT price will reach for a breakout above a falling wedge pattern on the daily chart.
Tether (USDT) starts minting on the Polkadot blockchain
The northbound move in Polkadot price may have stemmed from a late reaction to Tether's launch on its protocol. The leading stablecoin network announced on September 23 that USDT is mintable on the Polkadot blockchain.
Paolo Ardoino outlined via Twitter that "Polkadot is on a trajectory of growth and evolution this year and we believe Tether's addition will be essential in helping it continue to thrive." Polkadot price started responding positively to the news on the day the announcement was made, creating a bullish engulfing candle.
Resistance at $6.62 curtailed the uptrend as investors booked early profits. DOT price retreated to its previous support at $6.00 before breaking out in another bullish engulfing candle on Monday.
Read more: Polkadot price eyes retest of $7.5 amid increasing headwinds
Polkadot may be nearing a key juncture if a falling wedge pattern on the daily chart matures. Falling wedges are bullish patterns that often lead to a significant northbound trend reversal.
Traders should remember that the potential 27.33% breakout to $8.12 remains unconfirmed till Polkadot price breaks above the wedge's upper trendline. The OBV (On Balance Volume) indicator validates the growing bullish influence. Polkadot price will continue grinding to the upside as long as the OBV is up-trending.
DOT/USD daily chart
Adding credence to the bullish analysis is the Stochastic oscillator as it lifts from the oversold region (30.00 to 0.00). Additionally, a recently established positive divergence may continue to nurture an optimistic outcome for Polkadot price.
The 50-day SMA (Simple Moving Average –red) may invalidate DOT's new uptrend if it crosses below the longer-term 100-day SMA (blue). Support is expected at $6.00 and must be defended at all costs to avert further losses.
Read more: Polkadot Price Prediction: Is this the entry position traders have been waiting for?
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.