Polkadot (DOT) Regains Momentum, Trading Above $7. Can It Hold?

Despite a bearish start to the month, Polkadot (DOT) regained momentum and currently trades above $7.00. 

Despite following a downward trajectory in early April and recording losses of over 20% in the past month, Polkadot (DOT) managed to claw its way back up to trade above the critical $7.00 mark. While the past week saw DOT gain over 8%, the question now looms: Can it hold its position? 

Anticipation of Bitcoin Halving Drives Market Up

After a rocky red stint spurred by conflict in the Middle East, the crypto market at large managed to regain some of its position as investors await the crucial Bitcoin halving event. Polkadot (DOT) followed overall market trends to recover over 8% in the past week, following a 20% price dip over the past 30 days. The chart below shows $DOT down over 20% in the past month:

Polkadot (DOT) had significant developments the week prior, announcing an increase in new users, with wallets hitting 600,000 by the end of March. Polkadot’s surge in wallet addresses was spurred by its revolutionary parachains, such as Moonbeam. The network also announced it was considering a possible sponsorship deal for the upcoming Paris Olympic Games. The Polkadot community further announced it used an on-chain community vote to select IndyCar racing driver Conor Daly as its new brand ambassador. Amid its announcements of possible deals and successes, DOT could not resist the overall market downturn, which was motivated by rising tensions between Iran and Israel. 

Global Expansion and Network Upgrades

Recent announcements have fueled Polkadot’s partial recovery over the past week. On April 19, the Polkadot community proposed an $8.8 million sponsorship with Inter Miami football club as the network pushes to expand its global presence. 70% of the community has strongly supported the proposal featuring Polkadot’s branding on Inter Miami’s training kits for the 2024 and 2025 football seasons. 

Polkadot founder Gavin Wood shared further good news at the Token2049 crypto conference in Dubai. During a presentation at the renowned crypto conference, Wood introduced the Gray Paper that outlines Polkadot’s upcoming Join-Accumulate Machine (JAM) upgrade.

According to Wood, JAM is a groundbreaking protocol that combines Polkadot and Ethereum elements. Wood explained that the JAM upgrade, released ten years after the Yellow Paper, is a significant development in Polkadot’s evolution that will eventually replace its current Relay Chain with a “more modular, minimalistic design.” 

DOT rose by 3% after the announcement and is up a further 3.28% in the past 24 hours. $DOT currently trades at $7.11. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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