{"id":442266,"date":"2022-05-05T14:28:16","date_gmt":"2022-05-05T11:28:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dot-rallies-12-in-a-day-as-polkadot-gears-up-to-solve-a-major-blockchain-hacking-problem\/"},"modified":"2022-05-05T14:28:16","modified_gmt":"2022-05-05T11:28:16","slug":"dot-rallies-12-in-a-day-as-polkadot-gears-up-to-solve-a-major-blockchain-hacking-problem","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dot-rallies-12-in-a-day-as-polkadot-gears-up-to-solve-a-major-blockchain-hacking-problem\/","title":{"rendered":"# DOT rallies 12% in a day as Polkadot gears up to solve a major blockchain hacking problem"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a415c65e6c58\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a415c65e6c58\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/dot-rallies-12-in-a-day-as-polkadot-gears-up-to-solve-a-major-blockchain-hacking-problem\/#%E2%80%9D_DOT_rallies_12_in_a_day_as_Polkadot_gears_up_to_solve_a_major_blockchain_hacking_problem_%E2%80%9C\" >&#8221; DOT rallies 12% in a day as Polkadot gears up to solve a major blockchain hacking problem &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/dot-rallies-12-in-a-day-as-polkadot-gears-up-to-solve-a-major-blockchain-hacking-problem\/#DOT_price_gains_12_on_XCM_launch\" >DOT price gains 12% on XCM launch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/dot-rallies-12-in-a-day-as-polkadot-gears-up-to-solve-a-major-blockchain-hacking-problem\/#Other_bullish_catalysts\" >Other bullish catalysts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/dot-rallies-12-in-a-day-as-polkadot-gears-up-to-solve-a-major-blockchain-hacking-problem\/#Polkadot_price_risks_35_decline\" >Polkadot price risks 35% decline\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_DOT_rallies_12_in_a_day_as_Polkadot_gears_up_to_solve_a_major_blockchain_hacking_problem_%E2%80%9C\"><\/span>&#8221; DOT rallies 12% in a day as Polkadot gears up to solve a major blockchain hacking problem &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Polkadot (DOT) price ticked higher in the past 24 hours on anticipations that its new\u00a0cross-chain communications protocol would solve a long-standing problem in the blockchain sector.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DOT_price_gains_12_on_XCM_launch\"><\/span>DOT price gains 12% on XCM launch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bulls pushed DOT&#8217;s price to $16.44 on May 5 from $14.72 a day before, gaining a little over 12% as they assessed the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/wiki.polkadot.network\/docs\/learn-crosschain\">launch of XCM<\/a>, a messaging system that allows parachains \u2014 individual blockchains that operate in parallel inside the Polkadot ecosystem \u2014 to communicate with each other.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/128b0261-0fb9-40d5-9898-f71c7b233683.png\"><figcaption style=\"text-align: center;\"><em>DOT\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>As Cointelegraph reported, future updates in the XCM protocol would see parachains exchanging messages without relying on Polkadot&#8217;s central blockchain, the Relay Chain. That expects to eliminate bridge hacks that have cost the industry more than $1 billion in a year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Other_bullish_catalysts\"><\/span>Other bullish catalysts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>DOT&#8217;s gains also <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared in line with similar upside moves elsewhere in the cryptocurrency market.<\/p>\n<p>For instance, Bitcoin (BTC) rallied nearly 6% in the same period DOT climbed 12% with their correlation coefficient at 0.87 as of May 5, suggesting that BTC and DOT&#8217;s prices are moving almost in lockstep in recent days.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/57dce613-034f-4fb0-8759-3a7fe1bb2d65.png\"><figcaption style=\"text-align: center;\"><em>DOT\/USD and BTC\/USD correlation coefficient. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The crypto market gained after Federal Reserve clarified that it would not increase benchmark rates by a 75 basis point, as <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-04-18\/fed-s-bullard-says-75-basis-point-hike-could-be-option-if-needed\">propagated<\/a> by one of its presidents, James Bullard, in April 2022. The S&amp;P 500 index, too, rallied by nearly 3%, and bond yields fell.<\/p>\n<p>Nonetheless, the U.S. central bank remained on its path to cutting interest rates,\u00a0hoping to get near the 2-3% \u201cneutral\u201d while preparing for a &#8220;softish&#8221; landing, i.e., curbing inflation without overly impacting the U.S. economic growth. <\/p>\n<p>On May 4, it began with a 50 bps cut, with chairman Jerome Powell promising more 0.5% increments.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/eb5c12f3-d8a7-4c0b-bec1-4f8cab0161c5.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>As a result of this hawkish tone, Bitcoin&#8217;s current price rebound could fizzle out once more short of $40,000, taking down the rest of the crypto market with it, DOT included.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Polkadot_price_risks_35_decline\"><\/span>Polkadot price risks 35% decline\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Polkadot technicals put it at risk of a correction in the short term as it breaks below a head-and-shoulders\u00a0(H&amp;S) pattern.<\/p>\n<p>H&amp;S patterns appear when the price forms three peaks while gaining support from a common support level, called a neckline. Meanwhile, the middle peak (head) comes to be taller than the other two (left and right shoulder), which are more or less of same heights.<\/p>\n<p>H&amp;S typically resolve after the price breaks below its neckline. As a rule of technical analysis, a H&amp;S breakdown sends the price to level at a length equal to the maximum distance between the head&#8217;s peak and neckline.\u00a0<\/p>\n<p><strong><em>Related:\u00a0Bitcoin trader keeps $40.8K BTC price target amid warning over risk asset &#8216;pain trade&#8217;<\/em><\/strong><\/p>\n<p>DOT is in the breakdown stage of its prevailing H&amp;S setup, with its recent bounce testing the neckline as support to reconfirm the bearish pattern. <\/p>\n<p>Meanwhile, the neckline area coincides with the 50-day exponential moving average (50-day EMA; the red wave in the chart below) at $18.20, which sets up a potential pullback scenario following the next upside attempt.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/c409ab60-4a17-4377-a4fb-f76c67fa9c02.png\"><figcaption style=\"text-align: center;\"><em>DOT\/USD daily price chart featuring H&amp;S setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Polkadot&#8217;s H&amp;S downside target is near $11 if the breakdown continues, almost 35% lower than today&#8217;s price.<\/p>\n<p> Conversely, a decisive breakout above the neckline area and the 50-day EMA would have DOT eye its 200-day EMA (the blue wave) near $22.75 as the upside target.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/dot-rallies-12-in-a-day-as-polkadot-gears-up-to-solve-a-major-blockchain-hacking-problem\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; DOT rallies 12% in a day as Polkadot gears up to solve a major blockchain hacking problem &#8220; Polkadot (DOT) price ticked higher in the past 24 hours on anticipations that its new\u00a0cross-chain communications protocol would solve a long-standing problem in the blockchain sector. DOT price gains 12% on XCM launch Bulls pushed DOT&#8217;s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":442267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOWM1NjYxNmQtYzcyMC00NmJiLTk2OGYtMGUyMTc1ZDE0NzkzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75022,81262,74939,75150,78261,70550,70552,73785,4965,71407],"class_list":["post-442266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-central-bank","tag-cryptomarket","tag-market-analysis","tag-market-update","tag-tech-analysis","tag-federal-reserve","tag-interest-rates","tag-markets","tag-technology","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/442266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=442266"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/442266\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/442267"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=442266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=442266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=442266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}