These factors set the stage for the rally from DOT to a new ATH

For more than 3 months, DOT has had a sustained rally, although the pace has slowed a few times, but overall all is well. The last three attempts to get beyond ATH, however, have all been in vain.

DOT is currently trading at $ 42.7 and is posting a daily gain of 0.3% as Bitcoin is comfortably above $ 61,000. It appears that DOT is poised to increase its price due to certain development changes in line with its on-chain operation.

DOT 4-Hour Price Chart | Source: TradingView

Positive signals for the price of DOT

The price of DOT gradually declined before hitting a new ATH on October 26, but with the DOT hovering near the $ 43 mark, it just takes a push on the new ATH. Recently, Gavin Wood stated that the relay chain bridge between Polkadot and Kusama is expected to be operational before the end of the year. In addition, the bridge between the underlying parachains is expected to be operational in the first few months of 2022.

These developments appear to have reinforced DOT’s dominance in the market. In addition, the institutional investing aspect is also pretty solid as DOT is the most common asset held by venture capital funds and hedge funds.

Accordingly, DOT’s circulating market cap is currently $ 44.6 billion, roughly the same as ATH’s $ 45.06 billion. The circulating market capitalization (price of the asset multiplied by the circulating supply) with high values ​​means that the market has a good understanding of the future prospects of the asset.

Circulating Market Capitalization | The source: Messari

Another factor that seems to be driving the DOT rally is the high retail FOMO so far. Obviously, DOT is sowing the market with hope for a new ATH as it usually benefits price.

Although DOT price fell below the $ 45 resistance, trading volume rose impressively. Looks like the retail FOMO DOT supported.

Worm makes soup pot

After the DOT fell below $ 45.22, the open interest (OI) on the futures market also fell. While the open interest is relatively higher, it’s still below its October 20 level and stands at $ 861.73 million at press time.

Open contract | The source: Coinlyze

Additionally, the significant liquidation of long DOT positions totaled $ 17.1 million on October 27 when the price fell to $ 38.7. However, developments like the polkadot-based security layer project Manta Network, which is slated to kick off in an upcoming token event called “Squad Game,” are still driving DOT’s positive story.

In addition, in the first initiative of its kind, Polkadot invited users to vote for the future brand of blockchain. In this way, DOT can become a prime example of the combination of decentralized social and healthy activities that can drive the price of DOT to ATH earlier.

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