The Polkadot price has returned from its lowest level in July. The coin is trading at $14.28, which is about 40% above last week’s low. This uptick brings the total market cap to over $13.85 billion, making it the 9th largest coin in the world. It is sandwiched between Dogecoin and Uniswap.
What happened? The DOT price has risen mainly due to Bitcoin’s strong performance. After pulling back on Tuesday, Bitcoin surged above $40,000 on Wednesday. This performance is mainly due to the fact that investors expect the Federal Reserve to sound calm as it closes its meeting today. This is evidenced by the fact that bond yields have fallen to their lowest level this year.
Polka Dot Rise
Polkadot is also rising after the last round of parachain auctions ends. As we wrote on Tuesday, the five winners of the parachain auctions were Karura, Moonriver, Shiden, Khala and Bifrost Finance. This is notable because parachains are an integral part of the Polkadot network success story. Dogecoin price has risen.
Polkadot’s price is also doing well due to the strong performance of projects built with the network. For example, Chainlink, Kusama, Ontology, and Ankr have all risen significantly lately.
Why it matters. The Fed’s decision matters for cryptocurrencies because its tone could have an impact on risky assets. An aggressive Fed is usually bearish for cryptocurrencies, while a moderate Fed has been cited as the main reason why the price rose during the pandemic.
Polkadot price prediction
The daily chart shows that the Polkadot price has recovered strongly in recent days. That has seen it rise above the Fibonacci retracement level of 78.6%. Still, the coin remains significantly below the 50 and 100 day moving averages, which is a bearish sign. Holo price has risen.
It is also between the descending channel which is shown in black. Therefore, I suspect it is too early for bulls to applaud this recovery in my opinion. This is because I expect the coin to maintain the bearish trend as long as it remains below the two moving averages.