Polkadot price bucked the trend on Monday as the cryptocurrency meltdown continued. The DOT coin jumped to its highest level since May, bringing total gains to more than 278% since July. The coin has a market capitalization of more than $ 34 billion, making it the eighth largest cryptocurrency in the world.
Why is polkadot rising?
There is no specific news that triggered the sharp rise in the price of polkadot. Hence, I assume that investors expect the ongoing Parachain auctions to be relatively successful, which will generate more interest in the network. In fact, DOT’s price rebounded and bucked the trend during previous auctions.
Another possible reason for the Polkadot price rally is the upcoming cross-consensus messaging format called XCM. XCM will be a format, not a protocol, within the Polkadot ecosystem. Your goal will be to be a language that communicates ideas between systems of consensus. Hence, the introduction of this format has likely drawn more investors to the network.
As the final version of Polkadot 1.0 approaches, the cross-consensus messaging format, or XCM for short, is nearing its first production-ready version. Get an introduction to the XCM format, its goals and how it works from Polkadot founder @gavofyork: https://t.co/w1fycOzWGg
– Polkadot (@Polkadot) September 10, 2021
Polkadot price prediction
The daily chart shows that the DOT price is in a strong uptrend. And today the coin managed to move above the major resistance level of $ 35.65, which was its highest level on September 7th.
Polkadot price stays above the 25- and 50-day exponential moving averages (EMA), which means the bulls are in control. At the same time, the Relative Strength Index (RSI) has moved above 50 while the price is above the Ichimoku cloud.
Hence, the price is likely to maintain the bullish trend as investors target the next major resistance level at $ 50 which is its all-time high. On the downside, move below the $ 28.68 support will invalidate this view. This view is in line with my most recent DOT price prediction for September.