Polkadot price has held steady above the crucial zone of $7.00 following the upgrading of its native stalking with as low as 1 DOT. Even so, macroeconomics remain a key driver of the market. In particular, investors have their eyes focused on the Fed meeting minutes set for release on Wednesday. Remarks from the bank’s officials are expected to avail further cues on the direction of Fed’s rate hikes.
Fundamentals
The global crypto market cap rose by 1.47% on Tuesday to $1.14 trillion according to CoinMarketCap. In the same breath, the total crypto market volume has dropped by 2.10% over a span of 24 hours.
On the one hand, the recent upgrade to Polkadot’s native staking will likely continue to support the token in the ensuing sessions. The on-chain pooling is set to enhance DOT users’ accessibility and control. Indeed, it allows the staking of amounts as little as 1 DOT.
Even with this upgrade, uncertainties surrounding the Fed’s monetary policy and overall health of the US economy are largely behind Polkadot price’s curbed gains. Indeed, I expect the crypto to record rather subtle movements as investors await further cues from the FOMC meeting minutes set for release on Wednesday.
Signs that the central bank may approve higher interest rate hikes for longer will likley weigh on the altcoin and the broader cryptocurrency market. As is the case with other risk assets, an environment of high interest rates tends to be bearish for cryptos.
Polkadot price forecast
DOT/USD has been on an ascending channel since late last year as shown on its daily chart. Besides, it has continued to trade above the 25 and 50-day EMAs. A look at these technical indicators as well as the fundamentals indicates that the bulls are still in control. Indeed, I expect this trend to continue in the ensuing sessions.
As at the time of writing, Polkadot price was down by 0.9% at 7.482. On Sunday, it had risen to a 5-month high at 7.887.
In the short term, I expect the cryptocurrency to continue trading within the ascending channel in the ensuing sessions. In particular, it may find resistance at 7.737.
Indeed, the bulls will need to gather enough momentum to break this resistance if they are to rally further to the next target at the psychological zone of 8.00. On the lower side, the crucial zone of 7.00 is a support level worth watching in the ensuing sessions.
