Polkadot has been one of the most alluring cryptocurrencies in the past week. In the last seven days, the DOT price has increased by almost 12.7%. In our last Polkadot Price Analysis, we mentioned that DOT is heading towards the $8 support. Now, as DOT has touched the $8 price mark will it explode? Let’s take a look.
What is Polkadot?
Polkadot was assumed as one of the most influential projects on the crypto market in 2021. With the pursuit of its own blockchain internet, the project in 2021 demonstrated a longing to improve the connection of different blockchains with each other.
The Polkadot was launched in 2017 by the Web3 Foundation. The architect of the project is Dr. Gavin Wood. Gavin is also one of the co-founders of Ethereum and one of the creators of the Solidity programming language for smart contracts. When the company was launched, 10 million DOTs were distributed as network tokens. The number of DOT inflated to some 1 billion in August 2020 for the sake of transparency. The project is still in continuous development. Yet, a big piece of the anticipated operations of the network has now been enforced.
Polkadot Price Analysis– Will DOT price rise more?
DOT/USD Weekly chart – GoCharting
Polkadot’s price could touch the next support after splitting the $10.26 support. The weekly candle is still looking alright, so we do not anticipate an extremely heavy rise. Instead, we believe that the price could rise somewhat shortly. Yet, the requirement is that the weekly candle locks above $9 and ideally as a green doji. If that condition is fulfilled, we would predict the price to target the former $10.26 support, for now, to ensure this level of resistance.
If there is a bullish getaway, which we anticipate, we hope the price to rebound. Last time, when the Polkadot price smashed a trend line, the price grew by 45%. Now we expect similar growth. However, it will be too early to say that the price will rise heavily.
Polkadot Price Analysis: How Low Could Polkadot Fall in 2022?
DOT/USD Monthly chart – GoCharting
If we look at the monthly chart of the Polkadot price, we can notice that the price is far from dead in the downward direction. The indicator named Relative Strength Index (RSI) stays in the mid-range, which is distant from indicating a trend reversal. Once the RSI is below the 25 levels, one could say of a new upward movement. With this level still a long way off, the Polkadot price may drop to the next support zone between $3.63 and $4.09. After that, there could be a new upward trend. Yet, we do not want to say this will happen too soon.