Polkadot has been one of the breakout stars of 2022. The cryptocurrency has managed to thrive in a market where most of the digital assets are rapidly losing ground and losing value. With its breach of $8, the cryptocurrency has taken another step as it solidifies its position as one of the biggest contenders in the space, dethroning the beloved Dogecoin in the process.
Polkadot takes 10th place
Meme Coin Dogecoin has been able to maintain its position in the crypto top 10 by market cap over the past few weeks. However, that changed with the recent Polkadot rally this week. The digital asset traded more than 7% over the past seven days, taking its trading cap to over $8.5 billion, pushing its already impressive market cap to over $9.4 billion.
The result was that DOT’s market cap surpassed that of Dogecoin. Polkadot is now ranked as the 10th largest cryptocurrency by market cap, but that’s not all. DOT is one of the only cryptocurrencies to mark green on the last 24-hour and one-week time frame even though the market is recording a retracement.
At the time of writing, DOT is currently trading at $8.52 with a 24-hour recovery of 6.15%. It is interesting that the digital asset is trading at this high given that its trading volume is actually down. With $427 million in trading volume on the previous day, it is down more than 8% in this regard.
DOT trending at $8.3 | Source: DOTUSD on TradingView.com
As a general rule, Polkadot is following the recovery trend of Ethereum. This success in the largest decentralized finance (DeFi) network was spread to other networks, allowing them to see the biggest recovery during this period.
Dot Eyes $9
The recovery in the price of Polkadot has put it on an incredibly bullish path. It has now reached critical technical levels, which suggests that the recent rally may still hold some steam. The most prominent of these was the digital asset climbing above the 50-day EMA at $7.4.
As investors are inclined to buy cryptocurrencies at higher prices, there is increasing buying pressure, especially as sellers experience fatigue during this time. Additionally, with the recent high rates of inflation, more investors are turning to the decentralized finance market to find suitable hedges for funds.
DOT also has some free range to move higher considering that the next important resistance point is at $9. This price point is incredibly attractive to the bulls as it puts DOT on a platform to fight for 9th place with DeFi competitor Solana.
Featured image from Phemex, chart from TradingView.com
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