Polkadot [DOT] has recently achieved a new milestone, showcasing a significant surge in network activity. This achievement comes during a bullish market trend, raising speculation on the potential for further growth. Does this pave the way for Polkadot to reach $22?
Polkadot Sets a New Record
According to Token Terminal, a platform for data analytics, there has been a notable development. Monthly transactions on the Polkadot blockchain have hit an all-time high, escalating from 20 million to 60 million since the start of the year. This surge indicates a growing level of usage and acceptance of the blockchain. Besides transactions, various other metrics suggest an uptick in network activity.
Recent data from Artemis analyzed by CryptoCrypto revealed a consistent increase in daily active addresses on the Polkadot network over the past few weeks. This rise in addresses and transactions has also positively impacted Polkadot’s captured value metrics, exemplified by a sharp uptick in fees and revenue over the last month.
Is Polkadot’s Path to $22 Clear?
Polkadot witnessed a rise in network activity at a time when bullish momentum was dominant. Recent data from CoinMarketCap indicates that DOT saw a remarkable 25% surge in price over the past week, with a notable 15% increase on the previous day. Presently, the token has surpassed a critical resistance level of $10, reaching $10.02 and holding a market capitalization of $15.2 billion.
Prominent crypto analyst Ali Martinez shared predictions on DOT’s future trajectory, suggesting an imminent break above $10 or even $11. Following this, Martinez anticipates a brief pullback to around $7.5, after which Polkadot may embark on a journey towards $22 in the near future.
Encouragingly, the surge in DOT’s trading volume has accompanied its price surge, signaling a sustained bullish trend. Moreover, the increase in open interest implies the continuation of the current price momentum, potentially leading DOT to touch $11 soon.
Further insights from Coinglass suggest a notable increase in Polkadot’s long/short ratio, indicating a prevalent bullish sentiment with more long positions in the market than short. However, in the event of bearish dominance, a potential decline to $9.5 before further movement towards $7.5 could occur.