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Polkadot trading activity increased significantly in the last 24 hours with volume spiking 40%.
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The multi-chain blockchain ecosystem’s native token (DOT/USD) price also rose 7.37%.
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The rally started after Automate Network launched on Mainnet, announcing a $20 million incentive program.
On Tuesday, the Polkadot price (DOT) extended Monday’s gains by 7.37% after Automate Network launched on Mainnet. Polkadot is now up more than 20% from Sunday’s price.
Automate’s launch on mainnet is viewed as an essential step towards raising the level of privacy for Ethereum and Polkadot, and developer Apps (dApps) and decentralised finance systems (DeFis).
The platform also announced a $20 million incentive program for projects interested in leveraging Automata Network solutions for privacy in dApps and DeFi.
Should you buy or sell DOT?
Polkadot’s recent spike pushed its price to a new all-time high of about $53.10 before pulling back to settle at $51.84, as of this writing. The DOT/USD price seems to be about to complete an upward breakout from an ascending channel formation in the intraday chart.
As a result, it has rallied closer to the overbought conditions of the 14-day RSI, creating a perfect opportunity for a short-term pullback.
Therefore, this could be a great opportunity for investors to take some profits. On the other hand, those looking to take a short position against the Polkadot price could target price at about $46.01, or lower at $39.87, while $58.13 and 464.42 are crucial resistance zones.
In summary, although Polkadot’s long-term outlook is promising amid its unique blockchain ecosystem, the recent spike in the DOT/USD price creates an opportunity for a pullback.