The Polkadot ecosystem (DOT/USD), is expanding, and you might be wondering if it is the right time to invest in the token. In our previous CoinJournal report, we highlighted how Polkadot is growing in importance in allowing blockchain connections. If you are looking for a cryptocurrency that will return big, the Polkadot token might be worth considering. Is it right now?

A November 14 Dot Insights data indicated that the total number of daily new accounts on Polkadot increased almost 10 times. This growth occurred in two weeks while active accounts have risen 4 times. This growth can be attributed to liquidity outflows from centralised exchanges. Polkadot’s activity has increased, indicating the growing influence of blockchain technology.

In case you didn’t notice, the Polkadot token was software and not security. All the commotion surrounding XRP being considered a security token and the ensuing legal battle are well-known. After many years of negotiations and consultation, DOT was finally recognized as a non security earlier this month. This makes the token compatible with the “Investment Contract Framework” for the classification of digital assets. It gives the assurance that the blockchain won’t be in conflict with the SEC.

Clearly, November could be a good month for the Polkadot token. However, the FTX issues lingering. How is the cryptocurrency doing?

DOT faces resistance as the price recovers from the $5.3 level

DOT/USD Chart by TradingView

DOT recently set a new year low at $5.3. The token is traded at $6. 00, underlining an improved sentiment around the token.

The momentum indicator is bearish. However, the weakness has somewhat subsided. With the better outlook, DOT could move higher to locate resistance at $6.4.

Should you buy DOT now?

The general trend for the Polkadot token is bearish. We expect the price will find some ground over the next few days but the risk-reward relationship to the resistance level remains unattractive.

DOT must find a directional momentum to the upside to consider a buy. The token is still attractive for long-term, buy-and-hold.

Where to buy DOT

eToro

eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users have the ability to connect with, learn, copy, or get copied from other users.

Get a DOT today

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

Binance is known for its low trading fees and multiple trading options. These include margin trading, peer-to-peer, spot trading, and margin trading.

Get a DOT today