Key Takeaways
- Polkadot (DOT) price undergoes a modest rebound after a mixed US inflation print.
- The bounce appears on hopes that the Federal Reserve will pause rate hikes.
- Polkadot looks punctual toward its development roadmap.
YEREVAN (CoinChapter.com) — Polkadot (DOT) price rose alongside other top cryptocurrencies as traders assessed a mixed US inflation report on Sep. 13.
A Fed Rate Pause Imminent
The DOT price was up over 1% to around $4, wobbling between extreme gains and losses as the market looked for clues from the latest US Consumer Price Index (CPI) data.
The US CPI grew to 3.7% in August from 3.2% a month ago — the second straight month with an increasing year-on-year (YoY) inflation rate — thanks to the oil price uptrend. Meanwhile, the US Core CPI (excluding Food and Energy) dropped to 4.4% YoY, the lowest core inflation reading since September 2021.
The mixed CPI report has raised the Federal Reserve’s potential of pausing its interest rate hikes in the next FOMC meeting on Sep. 19-20. That will likely prove bullish for cryptocurrencies like Polkadot, given their history of rallying during lower interest rate periods.
A Short-Term DOT Price Rally in September?
From a technical perspective, the DOT price looks ready to rebound in the coming days as it treads around a key accumulation zone.
Notably, the Polkadot token trades near a descending trendline that has served as its support so far in 2023. Considering this fractal analysis, DOT’s potential to undergo bullish retracement in September has increased.
Suppose a rebound occurs. Then, the DOT price could rally toward its descending trendline resistance that has been capping its upside attempts — again — all across 2023. Simply put, the token eyes a rebound toward $4.50 in September or early October, up over 15% from current price levels.
Polkadot Stays Punctual to Roadmap
Technological progress seldom plays a key fundamental in a speculatively-driven altcoin market. However, investors with a long-term outlook view the project development as an important factor in determining their bias.
Interestingly, Polkadot has remained punctual when approaching its roadmap to develop its nominated-proof-of-stake (NPOS) blockchain network. For instance, the project finished two important developments in Q2/2023 with the launches of its fully decentralized governance model, dubbed “Open Gov,” and cross-consensus message format, XCM V3.
“These releases, although occurring towards the end of the quarter, hold immense potential to add value to the Polkadot network in the upcoming quarters,” noted Nicholas Garcia, a researcher at data resource Messari, reminding:
“Polkadot’s native token DOT was not flagged by the SEC as a security. The omission follows the Web3 Foundation stating DOT had morphed and was no longer deemed a security after three years of discussions with the SEC.”
