According to reports from AMBCrypto, Polkadot [DOT] has extended its bullish recovery by recording a 10.93% surge to $1.27 over the last 24 hours. The token is now trading at $1.1780, holding above the short- and medium-term Exponential Moving Averages (EMAs) but still capped by the longer-term 200-day EMA at $1.1864. The move comes just two days after the token price action rebounded from key EMA support at around $1.02. The token is now trading above all its key EMA support levels, pointing to potential buyer dominance continuation in the short run.
As reported by Polkadot, the network announced the launch of a new stablecoin, dotUSD, on Thursday, seeking to tap into the sector's $292 billion market capitalization. The stablecoin operates on a fundamentally different premise from most leading stablecoins, which companies issue and control. According to Polkadot, these companies, like banks, "decide who can hold them (stablecoins) and who can't." DotUSD operates without an issuing company nor a single point of control, with governance through the DOT DAO via OpenGov. This decentralized approach distinguishes it from traditional stablecoins that operate under centralized control.
As reported by AMBCrypto, the reduction in annual token issuance marks a significant shift in Polkadot's tokenomics. Fewer new tokens entering circulation equates to reduced selling pressure, with the circulating supply currently ranking 36th among the L1 tokens. The launch of a native stablecoin could expand activity across the ecosystem, supporting payments, decentralized finance applications, and liquidity, potentially creating new use cases for Polkadot.
According to AMBCrypto's analysis, Polkadot's Open Interest (OI) has increased 15% to $78 million as of writing, suggesting traders are opening new positions as the token advances. Notably, long accounts now represent 73% of total leveraged positions, according to recent Polkadot's Long/Short data, indicating that most traders and investors are betting on further gains for the token. The recent network upgrade paired with surging open interests and buyer dominance points to a continuation rally.
As reported by AMBCrypto, the recent network upgrade paired with surging open interests and buyer dominance points to a continuation rally. The token's sustained buying pressure from the $1.02 support level could strengthen the case for further gains, while holding above the reclaimed support could strengthen the case for continued price appreciation. A decisive daily close above the $1.1800 threshold would further strengthen the bullish momentum, though significant supply persists near this level. All these developments provide potential catalysts for continued price appreciation to $1.75.
