Connect with us
Active Currencies 14723
Market Cap $2,657,295,637,647.74
Bitcoin Share 51.47%
24h Market Cap Change $4.59

How Polkadot [DOT] plans to shoot for the stars with this ‘Stellar’ deal

2min Read
How Polkadot [DOT] plans to shoot for the stars with this 'Stellar' deal

Share this article

  • Polkadot secured yet another important partnership with Stellar to boost liquidity.
  • DOT saw a short-term breakout but it might be short-lived as the price approaches another sell zone.

The Polkadot [DOT] network, on 28 March, announced a major partnership with the Stellar network as it planned to harness more liquidity. According to the announcement, the two networks will connect to each other through the Spacewalk bridge. The latter is a new development from one of Polkadot’s parachains, called Pendulum Chain.


Is your portfolio green? Check out the Polkadot Profit Calculator


This partnership will facilitate the smooth flow of stable assets across the two networks. The strategic agreement comes amid liquidity concerns following the pressure that stablecoins have been facing. Polkadot’s announcement may have also spurred the upsurge in the network’s development activity in the last 24 hours.

Polkadot development activity.

Source: Santiment

The focus on stable assets is by no means a coincidence. Some blockchain networks have unlocked robust value through their heavy focus on providing access to stablecoins. The TRON [TRX] network is one such example. Supporting the flow of stablecoins may unlock more liquidity for the Polkadot network.

DOT bulls push out of short-term range

‌At press time, DOT was showing signs of relative strength and a potential breakout. Its four-hour chart revealed that DOT’s price had been trading within a descending range for the last 11 days or so. Nevertheless, bulls have dominated in the last 48 hours, leading to a breakout from its descending resistance.

DOT price action

Source: TradingView

The higher relative strength is evident by the RSI’s push above the 50% level. DOT’s money flow indicator confirmed that there were significant inflows into the cryptocurrency this week.

Despite this upside, DOT’s price might contend with some resistance near the $6.35 price level, which interacted with the 50-day MA. Its $6.25 press time price meant that DOT was fast approaching the resistance level.


Realistic or not, here’s Polkadot’s market cap in BTC’s terms


The possibility of a bearish outcome is further backed by the drop in investor consensus as captured by the weighted sentiment. The latter had its weekly peak on 24 March and has since fallen back to its weekly low levels. DOT’s volatility also underscored the resistance expectations further down the road.

Polkadot weighted sentiment and DOT volatility

Source: Santiment

Although the volatility and weighted sentiment highlight a bearish bias, things are different in the derivatives segment. Both the Binance and DYDX funding rates have improved significantly in the last five days. Note that this improvement in the derivatives market might also allude to higher demand for leverage traders, including short sellers.

Polkadot Binance and DYDX funding rates

Source: Santiment

Share

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.