- DOT hiked by almost 12% in the last 7 days
- Sustained developments and RWA integrations have changed the market sentiment too
While most altcoins have seen major bouts of depreciation lately, according to crypto analyst Michael Van De Poppe, a considerable upswing is taking shape on DOT’s charts. In fact, DOT surged by 11.88% over the past week, leaving analysts optimistic about Polkadot’s future.
For his part, De Poppe is pretty confident about the altcoin’s long-term trend. The analyst claimed,
” $DOT is likely going to follow Ethereum in its upward expansion. This means that the current valuations of Polkadot are extremely low. With all the new segments, I expect a lot from the Polkadot ecosystem.”
RWAs driving DOT’s market sentiment
One of the most notable factors driving DOT’s recent resilience is its adoption and integration of real-world assets. In fact, according to Esra Bulut’s post on X, RWAs are now the center of the current bullish outlook. She shared,
“Real World Assets (RWAs) are gaining momentum in the crypto space, and @Polkadot $DOT is at the forefront of this trend with their innovative development. The integration of the RWA industry by the Polkadot team is a game-changer, paving the way for a long-term bullish outlook.”
The integration is fueling a positive market outlook for various reasons.
For starters, RWAs are growing and have significant market potential. According to estimates, RWAs will grow to between $4 trillion and $16 trillion by 2030. Therefore, DOT has massive potential in RWAs because of its scalability and security.
Since RWAs in the traditional markets seek reliable, secure, scalable, and affordable chains, Polkadot may well be well-positioned to thrive.
Is DOT Set for Uptrend?
The last 7 days saw the altcoin climb significantly on the price charts. The same was evidenced by AMBCrypto’s own analysis too, with the same revealing how the market trend shifted from bearish to bullish on the back of a sudden price hike and a spurt in buying pressure.
Source: Tradingview
AMBCrypto’s analysis also revealed that DOT had a negative MACD and Signal line, while there was a positive histogram.
The positive histogram, while the MACD is above the signal line, usually indicated the trend’s reversal and the uptrend’s start. Simply put, the bearish trend seemed to weaken, with the market at the early stages of a bullish reversal.
Source: Tradingview
Equally, the RSI 51, which was slightly above neutral, underlined the start of an uptrend. The RSI rose from 39 in the last 3 days to 51, indicating a sustained weakening of bearish momentum.
Source: Tradingview
Finally, the DMI indicated bullish divergence, with a positive directional indicator rising from a low of 12.4 to a high of 21.
In fact, the negative directional indicator fell from a high of 33 to a low of 26 in 7 days. What this meant was that bearish momentum has been weak, and bulls may be pushing the market in their favor.
Source: Santiment
Here, it’s worth looking at other metrics too. In the last 7 days, for instance, development activity rose from 2.2 to 2.9. The hike in projects on tokenized RWAs can be interpreted to be a sign of steady development on Polkadot, making it attractive to investors and traders.
Source: Coinglass
Finally, Coinglass highlighted declining liquidations for both short and short positions. Low liquidations indicate market stability, with investors holding their assets to sell in future.
There is little profit-taking or sell-off, which results in stability or confidence in the prevailing trend.
