Why Is Polkadot (DOT) Price Up Today?
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NOIDA (CoinChapter.com)— Polkadot is making headlines, and several key developments are driving its native token DOTs’ price upward. Moreover, announcing a new Cardano-Polkadot light client and NFT swap bridge could be why Polkadot’s price is up today.
Additionally, the upcoming Polkadot Decoded event is expected to bring further positive momentum to the ecosystem.
DOT prices have been on an uptrend for the last 7 days, with the Polkadot token climbing over 19% WTD to reach a daily high near $6.45.
Community Efforts and Technical Advancements
Felix, a uniFires team member, revealed plans for a Cardano-Polkadot light client bridge and an NFT swap on the Polkadot Forum. The proposal has already been submitted to Cardano, with plans to present it to Polkadot’s OpenGov for funding.
The project will proceed in phases, starting with a feasibility study, followed by an MVP, and finally, a complete product.
The initiative aims to bring together skills and resources from both ecosystems. Felix mentioned working with various Cardano entities and connecting with key figures from Polkadot’s OpenGovWatch to gather feedback and support.
The community has responded positively, with discussions focusing on the bridge’s technical aspects. Polkadot Head Ambassador Tommi Enenkel highlighted the importance of verifying Beefy proofs on Cardano L1 for the Polkadot-to-Cardano direction.
Adding to the bullish sentiment, SnowBridge recently activated the Polkadot-Ethereum bridge. This development enhances Polkadot’s interoperability by allowing ERC20 asset transfers between the networks. The bridge uses first-party signatures from Polkadot and Ethereum validators.
The update might be one of the reasons why Polkadot’s price is up today.
DOT Price Forms a Bullish Technical Pattern
Meanwhile, another reason why Polkadot price is up today might be the token forming a bullish technical pattern called the ‘falling wedge.’
A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.
The pattern indicates that an asset’s price while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs upward, in line with the overall trend.
To estimate the price target, traders measure the widest part of the wedge at the beginning and project this distance upward from the breakout point. A higher trading volume during the breakout confirms the reversal’s reliability, indicating stronger market conviction and a higher likelihood of success.
According to the rules of technical analysis, DOT price might rally over 98% from its current level to reach the pattern’s projected target near $220.
The post Why Is Polkadot (DOT) Price Up Today? appeared first on CoinChapter.
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