The price of Polkadot’s native DOT token has pumped significantly this week, rising 33% over the past 7 days. DOT was trading around $7.5 at press time, up 19% in the last 24 hours alone.
This price surge makes DOT one of the top performing major altcoins recently. The move comes as the broader crypto market shows signs of recovery from the 2022 bear market.
Influential crypto trader Ash Crypto, who has over 800k followers on X (former Twitter), celebrated the rally in a tweet to his over 800k followers: “DOT IS PUMPING HARD AND DOT 2.0 IS JUST AROUND THE CORNER. BEARS ARE GETTING LIQUIDATED. PEOPLE WHO SAID DOT WAS DEAD ARE VERY QUIET TODAY. PLS GOD SEND IT TO $50!”
The sentiment shows bullish expectations that the price could continue rising if DOT 2.0 brings renewed interest and usage to the network.
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Polkadot 2.0 to Introduce Key Upgrades for DOT
Polkadot 2.0, the next evolution of the Polkadot blockchain protocol, aims to unlock new capabilities that could drive further growth for the network’s DOT token. The upgrade introduces several key features that allow Polkadot to scale more efficiently and securely.
One notable addition is “Coretime” – a way to measure the computing resources required to power the network. Developers will be able to purchase these resources through auctions or on a pay-as-you-go basis, giving them more flexibility over costs. This technological improvement could attract more projects to build on Polkadot.
How to increase the price of $DOT— Market Mobster (@MarketMobsterUK) December 6, 2023
– Coretime model (2.0) | Will reduce the barrier to entry for smaller projects. Bought monthly or bulk via DOT.
– Reduce treasury amount and increase the burning of tokens (from this), allowing a more cost-effective system and reducing the…
Furthermore, staking and network security are receiving a boost in Polkadot 2.0. Since DOT plays an integral role in governing and securing the blockchain, enhancements to the staking model could raise staking yields and the token’s appeal to investors.
Finally, Polkadot 2.0 is optimizing parachain auctions, making it easier for projects to lease parachain slots and plug into the network. More activity on parachains can drive utilization and demand for DOT itself.
With these impactful changes on the horizon, traders are betting on Polkadot 2.0 to push DOT above its current price levels by bolstering real-world usage and capital inflows. The bull case will strengthen if the upgrade can deliver on its technical promises.
Looking at technical indicators, the daily relative strength index (RSI) for DOT reads 55. An RSI reading between 50 and 70 generally indicates bullish momentum. The breaking of a falling wedge pattern that DOT had been trading in also points to a trend reversal.
As trader Henry_Crypto_Signals noted on TradingView, this falling wedge breakout resulted in a 400% profit so far, and he expects a “massive bullish wave” going forward.
With altcoins often outpacing Bitcoin in bull markets, traders seem to expect Polkadot’s recent breakout to be the start of a larger uptrend as the crypto market recovery solidifies. The introduction of the major DOT 2.0 upgrade could accelerate that.
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