- Polkadot price has made a strong recovery in the past few weeks.
- It rallied after the partnership between Astar Network and Acala.
Polkadot price made a strong bullish comeback after the latest US consumer inflation data and the latest partnership between Astar Network and Acala. The DOT token rose to a high of $9.6465, which was the highest point since June 6th of this year. It has risen by more than 60% from the lowest level this year, giving it a market cap of over $10 billion.
Astar and Acala partnership
Polkadot is a leading blockchain network that makes it possible for developers to build highly interoperable projects known as parachains. These parachains connect with other chains through bridges and a technology known as relay chain. Other important parts of the network are validators and collators.
Polkadot price went parabolic on Wednesday after the US published the latest consumer inflation data. The numbers showed that consumer prices dropped sharply in July as the price of gasoline eased substantially.
Therefore, cryptocurrencies, stocks, and commodity prices rebounded as investors changed their forward guidance about the Federal Reserve. Most of them believe that the Fed will slow down in implementing rate hikes in the coming months.
Learn more about how to buy Polkadot.
However, most officials who talked after the data remained adamant that the bank will continue hiking rates until signs emerge that prices will drop to about 2%.
Polkadot price also rose after two of its top parachains announced that they were teaming up. Astar Network is an innovation hub while Acalais a DeFi platform. This partnership will empower developers to build on Astar’s network by leveraging Acala’s native assets like sUSD, LDOT, and ACA.
The partnership will also use the recently launched trustless polkadot bridges (XCM). In a statement, the founder of Astar said:
“This collaboration is the first official campaign conducted by major Polkadot parachains in the ecosystem. As it has been the case in the past, Acala and Astar will lead the Polkadot ecosystem and create multichain use cases together.”
Polkadot price prediction
The four-hour chart shows that the DOT price has been in a strong bullish trend in the past few months. As it rose, the coin managed to move above the important resistance point at $8.41, which was the neckline of the inverted head and shoulders pattern.
The coin has managed to move above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. Therefore, the coin will likely keep rising as investors target the key resistance at $10. A move above $10 will see it rise to the next psychological level at $15.
