Polkadot, an open-source protocol devised by Dr Gavin Wood, a co-founder of Ethereum, aims to advance the field of blockchain technology through its emphasis on security, scalability, and innovation. The primary objective of this endeavor is to establish a framework that encourages innovative concepts while maintaining compatibility, thereby signifying a crucial progression in the development of blockchain technology.

DOT's Importance On The Network

The proprietors of DOT, the native token of Polkadot, are granted governance rights over the entire platform. This consists of administering parachains, determining network fees, and voting on upgrades. DOT further contributes significantly to network consensus via staking, which incentivizes holders to comply with regulations in order to preserve their stake.

DOT is also employed during the "bonding" process of introducing new parachains into the ecosystem. The bonded DOT remains sealed during the bonding period and is released once the parachain is extracted from the ecosystem.

Polkadot Investors Await Crucial Events

The Polkadot price showed a massive bull run in 2021 but went to the bottom after setting a new high in November 2021. However, the current price trades 98% higher than the yearly opening, which indicates more room to raise the price.  

On December 22, Polkadot is scheduled to facilitate an Ask Me Anything (AMA) session with the subject matter of decentralized financing (DeFi). Speakers from a variety of organizations, including Centrifuge, Moonwell, Interlay, and Starlay Finance, will be present at the event.

Polkadot (DOTUSD) Technical Analysis

In the daily chart of Pokadot (DOT), the recent price showed the biggest 1-day gain in the last three months, which is a remarkable gain. Moreover, the upcoming event and ongoing talks on Bitcoin ETFs approval could work as a confluence of bullish factors for this coin.

In the most recent chart, the upward pressure has come from the dynamic 20-day EMA, which is just above the 6.36 static support level. As the daily price closed above the 7.77 swing high, we may aim for the 10.00 level for the coming days.

However, a sufficient downside correction is pending in this pair, as the current price is at the premium zone. In that case, a corrective downside pressure and a bullish rejection from the 7.34 to 6.30 area could be a long opportunity. A bearish daily close below the 6.00 level with a bearish daily candle could lower the price toward the 4.81 static level.

*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.