Polkadot (DOT) Hits Major Milestone, Can It Push DOT Past $10?

Polkadot (DOT) Hits Major Milestone, Can It Push DOT Past $10?

Polkadot achieved a major milestone, hitting a record high of 600,000 unique addresses, highlighting the increasing interest, adoption, and utilization of the Polkadot network. 

Analysts are hopeful the latest milestone could help reverse a recent bearish trend that has seen DOT drop from a recent high of $11.82 to its current $8.55. 

Activity On Polkadot Rising 

Polkadot addresses hit a record high despite the community’s efforts to promote meme coins not gaining any significant traction. Data from DotLake has indicated that out of the 600,000 active addresses, 41% or 248,000 can be attributed to Moonbeam, a dedicated parachain within the larger Polkadot ecosystem. A further 191,000 addresses were created directly on the Polkadot ecosystem. 

“Activity continues to grow in the Polkadot ecosystem, where many apps use dedicated blockspace to prevent issues like network spam. Polkadot is about flexibility without compromising on resilience. In the end, this benefits the users.”

The increase in active addresses indicates growing activity in the ecosystem, with various projects leveraging block space to ensure efficient network operations. The surge in activity is also indicative of a robust and flourishing environment for developers and users and highlights Polkadot’s potential as a leading blockchain platform. 

Polkadot has also witnessed a significant increase in the number of unique accounts with non-zero balances. By March end, this figure had crossed 5.59 million, indicating growing user participation in the Polkadot ecosystem. However, despite the growing number of active addresses and unique accounts, transactions on Polkadot remained subdued. March saw a total of 11.58 million monthly transactions, which is a slight increase from the previous month but significantly lower than the transaction volumes recorded in December 2023. 

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Polkadot (DOT) Dips Below $9 

Polkadot (DOT) is currently trading at $8.55, indicating a decline of 1.27% over the past 24 hours. The current price is a far cry from its recent high of $11.80, which DOT hit on the 15th of March, 2024. Since then, DOT has faced significant downward pressure, which pushed the price below $9 by the 19th of March. However, the price found support at these levels, rebounding back above $9 by the 25th of March. However, as indicated by the MACD and the 50-day SMA going over the 20-day SMA, bearish sentiment prevailed, and three consecutive bearish sessions pushed the price back below $9 to $8.40, where DOT found support.

Currently, DOT is facing resistance at $9, with bears looking to push the price back towards its support level of $8.40. Should the price fall below this level, we could see DOT go as low as $8. However, if the price is able to recover, test, and move past the resistance at $9, we could see bullish sentiment return, with the price potentially looking to push past the $10 mark once again. However, most indicators for DOT indicate bearish sentiment prevailing, with bullish sentiment returning only if the price moves past the $9 price point and the 20/50 day SMAs.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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