Polkadot has established itself rather peacefully in the top 15 most valuable cryptocurrencies. The Parachain auctions in December had played a vital role in the price gains for the DOT token at that time. This post is all about Polkadot price analysis and can DOT price reach 20$ again. Let’s take a look at it in more detail.
What is Polkadot?
Polkadot was regarded as one of the most compelling projects on the crypto market in 2021. With the purpose of its own blockchain internet, the project in 2021 showed hope to enhance the connection of different blockchains with each other.
The Polkadot was launched in 2017 by the Web3 Foundation. The creator of the project is Dr. Gavin Wood. Gavin is also one of the co-founders of Ethereum and one of the developers of the Solidity programming language for smart contracts.
When the company was established, 10 million DOTs were allocated as network tokens. The number of DOT grew to some 1 billion in August 2020 for the sake of clarity. The project is still in continuous development. Yet, a big portion of the expected operations of the network has now been implemented.
Polkadot Price Analysis– DOT’s Daily Price is Lazy
Even in the lack of substantial gains, the DOT price could display good performance. At the time of writing this, the DOT price is sitting at $9.71. The interesting thing to note here is that in the last seven days, the DOT price has increased by almost +20.45%.
The DOT/USD daily Parabolic SAR could be still in a sluggish area. We can notice that some dots have constituted below the price and are slightly rising in an upwardly sloping pattern, this could mean that the sluggish trend could be there in the next few days. Now, if we observe the daily Parabolic SAR, then we will find that the dots have formed between the $6.83 and $7.67 price range.
The Polkadot(DOT) price movement noticed a range-bound in the last few months, sailing between $23 and $15. Yet, after the massive market crash, the price dropped by almost 70% to $7.35.
Polkadot Price Analysis– Can DOT touch 20$ again?
Again, the coin has utilized the $7 levels as support over the last week and is now slowly advancing towards the active overhead trendline. This continued movement has regained near to 30 to 40% of the DOT’s price from $7.27 to $9.45.
Polkadot price created a downtrend line during the recent crash move. It is heading towards the $8 support. If the price breaks the $8 support, we would be bearish on the Polkadot price. Yet, in our view, this break is doubtful, which is why we believe that the price will break the trend line. Lately, the price pattern had a similar shape. A trendline was also constituted there, which is leading towards the $10. If the price touches $10, a breakout could happen and this could be a positive sign for Polkadot.
If there is a bullish getaway, which we expect, we hope the price to rebound. Last time, when the Polkadot price broke a trend line, the price increased by 45%. Now we anticipate a similar growth. However, it will be too early to say that the price will reach $20 soon.
The cryptocurrency market as a whole
Polkadot comes under the Top 15 cryptocurrencies. As mentioned earlier, it’s also up in the past 7 days by almost 20%.
Here is a list of the Top 5 coins and their price performance in the lat 24 hours:
1- Bitcoin (BTC) : + 2.95 %
2- Ether (ETH) : – 1.10%
3- Ripple (XRP) : +6.85 %
4- Tether (USDT) : +0.42 %
5- Binance Coin (BNB): +17.36%
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