Polkadot Price Prediction As Protocol Brings Real World Assets On-Chain, Bullish Signal?
Polkadot price prediction: The crypto market is moving sideways on the first day of the last month of the year, but Polkadot (DOT) shows a completely different picture, increasing by 4% to $5.39.
Traders have been turning their attention to large market cap altcoins like Solana (SOL[), Chainlink, Polkadot, and more with Bitcoin and Ethereum consolidating.
Polkadot cumulatively gained 24% in the last 30 days, a feat achieved due to the developments within the network, including the strategic partnership to advance real-world assets (RWAs) adoption on-chain.
Polkadot Price Prediction: DOT May Drop First Before Rebounding
After a few weeks of consolidating and searching for higher support, Polkadot broke above the first descending trendline at $5.33. The momentum extended the rally to $5.51 but the stalled shortly after.
Drawing a trendline to connect the latest highs and November’s top at $5.87 shines a light on the growing resistance which could compel more traders to close their long positions and lock in the gains.
On the bright side, Polkadot could bounce off the first trendline and make a stronger approach to the next resistance zone between $5.8 and $6. The 50-day Exponential Moving Average (EMA) (red) holding slightly below the trendline may help to mitigate the downside but it is too early to rule out a possible drop to $5.
A short-term bearish outlook is building based on the Moving Average Convergence Divergence (MACD) indicator. The sell signal will manifest with the blue MACD crossing below the red signal line.
It is worth mentioning that an extended correction is unlikely considering the generally bullish crypto market. Besides, investors are looking forward to a Santa rally likely before or after Christmas.
Historical data shows that the crypto market has a higher tendency to rally in December and January than lose traction. That said, a successful retest of the first trendline’s support which coincides with the 50 EMA could boost DOT’s recovery to $6 — a move likely to eventually push for highs above $10.
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Polkadot Collaborates With Web3 Foundation To Bring Real-World Assets On-Chain
The Web3 Foundation known for supporting the development of the Polkadot ecosystem has announced the intention to tokenize a section of its treasury into real-world assets (RWAs) in collaboration with Centrifuge, a platform for advancing on-chain finance.
⚡️ @Web3foundation will deploy part of its treasury into real-world assets on Centrifuge, beginning with an investment in tokenized US treasuries.
We’re happy to have the trailblazers behind @Polkadot on board with our mission to bring the world onchain!https://t.co/Nx28nG5ZiS
— Centrifuge (@centrifuge) November 29, 2023
According to a blog post published by Centrifuge, the Web3 Foundation will kickstart this process with an investment worth $1 million. This decision comes as part of the organization’s mission to support the development of Web3 projects.
“With this collaboration between Centrifuge and Web3 Foundation, the stage is set for significant growth and innovation for real-world assets using Polkadot’s infrastructure and technology,” Lucas Vogelsang, Co-Founder of Centrifuge said.
Tokenized real-world assets are a fast-growing sector of the crypto economy, especially on networks like Chainlink and Maker DAO. It is projected that the sector will be worth $16 trillion by 2030, and Polkadot is likely to be a significant player.
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