Polkadot (DOT) Pumps by 22% Daily: What Drives the Rally and What’s Next?

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Well, well, well, it looks like the cryptocurrency market decided to stage a little bit of a comeback. You know, nothing major, just a slight recovery where a few digital assets found their mojo again. Some of them are even clawing back from recent losses like they had never fallen off the wagon. And guess who’s leading the charge? Polkadot (DOT), of course, up by a dazzling 22% in the last 24 hours. A true underdog story if I’ve ever seen one.

The Upcoming Halving and More

Polkadot’s native token, which had its heyday back in 2021 when it flirted with $50, has been doing its best impression of a sad, deflated balloon over the past few months. It crashed to an almost laughable $1.15 at the beginning of February. But like any good drama, there’s a twist. Enter yesterday’s rally, where DOT soared to about $1.74, taking its market cap past $2.6 billion-just a casual flex. Polkadot has climbed to the 36th spot among cryptocurrencies, reminding us all that it’s still got a little fight in it.

What sparked this glorious rise from the depths? Well, Bitcoin (BTC) is edging closer to $70,000, Ethereum (ETH) is back above the $2,000 mark, and the whole market’s in a bit of a hot streak. Naturally, this has spilled over to Polkadot. But wait, there’s more! Analysts are saying there could be some other reasons behind the pump, because who doesn’t love a good mystery?

According to Lark Davis, the influencer with almost 1.5 million followers on X, Polkadot’s upcoming halving event on March 14 could be the culprit here. Yes, halving! The event that promises to slash annual token issuance by 50%, triggering the ‘scarcity narrative’ that’s apparently driving everyone into a frenzy of bullish sentiment. Who knew scarcity could be so popular?

And the plot thickens. Davis also suggests that the hype surrounding potential spot DOT ETFs is giving Polkadot a little extra spice. Big names like Grayscale and 21Shares are reportedly interested in launching these investment products. Should regulators finally wake up and approve them (we’re looking at you, regulators), it will mean that investors could jump into Polkadot without even touching the token directly. Simple, easy, and very, very tempting.

The crypto-friendly regulatory climate in the US is also helping. ETFs are popping up like mushrooms after rain, so the idea of a DOT-backed investment vehicle isn’t exactly out of the realm of possibility. A little bit more market participation? Oh, that’s bound to push the price even higher. DOT could become the next big thing-at least until the next thing comes along.

But wait, there’s even more! According to Davis, DOT’s recent rise is partly due to it “breaking above the daily 20 EMA and horizontal resistance at around $1.40+,” while holding steady support at $1.23. This technical mumbo jumbo is just enough to trigger some momentum buyers. And we all know how momentum can make a bull run seem like it’s never going to stop.

The Next Targets

So, what’s next for this crypto superstar? According to some analysts and traders who are clearly having the time of their lives, there’s more potential for growth. One optimistic X user, RACHEL CRYPTO, predicts the price could hit $1.80. Meanwhile, Crypto GVR is daydreaming about a long-term rise to the $2-3 range. Why not? Dream big, folks.

But here’s the catch. As always, there’s a catch. DOT’s Relative Strength Index (RSI) is waving a red flag. The RSI measures how quickly the price is changing and can give us clues about possible price reversals. It ranges from 0 to 100, with anything above 70 screaming “overbought” and heading into “bearish territory.” Currently, DOT’s RSI is around 73. So, maybe take a breather before you buy in. This rocket could just hit a few clouds and lose some altitude.

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2026-02-26 19:24