Polkadot [DOT] Sets a New Record, Does This Mean Its Road to $22 Is Clear Now?

Polkadot [DOT] recently set a new record, reflecting a massive rise in its network activity. This happened amidst a bull rally, which, if things

Polka dot [DOT] recently hit a new high, reflecting a massive increase in its network activity. This happened during a bull rally, which, if all goes well, could continue to sustain itself further. Does this mean that DOT’s path to $22 is now clear?

Polkadot reaches a new milestone

Token Terminal, a data analytics platform, recently posted an update on its Twitter handle, revealing a major update. According to the tweet, the monthly transactions on the Polkadot blockchain reached a new all-time high.

The blockchain’s monthly transactions increased from 20 million to 60 million since the start of the year, indicating a rising usage and adoption of the blockchain. It wasn’t just the transactions that hinted at an increase in the network activity.

A look at Artemis’ data by AMBCrypto revealed that Polkadot’s daily active addresses have been rising over the last few weeks. Owing to the rise in addresses and transactions, Polkadot’s performance on the captured value front also appeared to be strong.

This was evident from the sharp rise in its fees and revenue over the last 30 days.

Source: Artemis

Is DOT’s path clear?

Polkadot’s network activity surged at a time when the market was being driven by the DOT bulls. According to CoinMarketCap, DOT registered a noteworthy 25% price hike in the last seven days.

The previous day was also largely in the investors’ favor, as the token’s value increased by over 15%. At press time, the token crossed a key resistance at $10 and traded at $10.02, with a market capitalization of $15.2 billion.

Ali Martinez, a well-known crypto analyst, recently posted a tweet charting out a future plan for DOT. In the tweet, it was mentioned by Martinez that while we can see a clear path for DOT to cross $10 or $11,

After this, Martinez expects the token to see a minor pullback towards $7.5. Once that is done with, we might see DOT begin its journey towards $22 in the coming days/weeks.

The good news was that DOT’s trading volume surged along with its price—a sign of a sustained bull rally. Moreover, its open interest also increased, suggesting that the ongoing price trend will continue. If that’s the case, then we might soon see DOT touching $11.

Source: Santiment

Moreover, according to data from Coinglass, Polkadot’s long/short ratio registered a major uptick, indicating that there were more long positions in the market than short positions — a sign of rising bullish sentiment in the market.

Read Polkadot’s [DOT] Price Prediction 2024-25

However, if the bears take over the market, we might first see DOT dropping down to $9.5 before it continues to move southwards towards $7.5.

Source: Coinglass