Now that the Bitcoin halving event is over, the crypto market looks geared up for a rally. In this phase, traders and investors might also be looking to invest in other crypto tokens as well, apart from Bitcoin. If you’re one of these investors, this blog could be the perfect refresher for one of the most notable tokens: Polkadot (DOT). The Polkadot crypto price is hovering above $7 as of April 2024. But where could it head in the future?
This blog discusses a few Polkadot crypto price predictions based on a brief background of the token and its past performance.
The crypto market: current trends
Two major factors have influenced the crypto market’s movements in recent months: the US spot Bitcoin ETFs and the Bitcoin halving event. As a result, the year already witnessed the global crypto market cap rise to almost $3 trillion.
Apart from Bitcoin and Ethereum, altcoins have also contributed significantly to the crypto rally. A lot of market indicators still hint towards an extended altcoin rally in 2024. Led by the crypto market’s optimism, one may see a major jump in altcoin prices this year.
Among all the altcoins, what makes the DOT token special? What do analysts predict about Polkadot crypto price targets? Keep reading ahead to know the answers.
What is the Polkadot crypto?
The Polkadot protocol is a blockchain network that solves a major issue in blockchain technology: interoperability. In other words, Polkadot connects different blockchain networks and enables them to interact with each other. Using Polkadot, a blockchain network can thus send data or information to another unrelated blockchain. Its use case is thus highly important among standalone blockchain networks like Bitcoin and Ethereum.
The Polkadot crypto’s creation in 2020 is thus regarded as a sort of milestone in the crypto sector. Moreover, it also enables scalability and faster transactions on blockchain networks via the use of parallel chains. In contrast, single-chain blockchains may have to deal with slower transactions and scalability problems.
The Polkadot blockchain’s native crypto token, the DOT token, has also become very popular. As of April 25, 2024, the DOT token’s market cap has surged beyond $10 billion, with a total circulating supply of approximately $1.4 trillion DOT.
Polkadot crypto’s past performance: an analysis
Let us analyze the DOT token’s past performance from the two charts below:
The chart above denotes the Polkadot crypto token’s movements in the last twelve months. We notice how the DOT token was trading below $6 until the end of 2023. Since then, it has risen steadily, while its rally has also occurred at the same time as that of the broader crypto market. Around the time BTC hit its all time high in March 2024, DOT also rallied until above $12. Since then it has shed losses to settle in its current trading range.
On the other hand, the chart above shows the trajectory of the DOT token since 2020. It touched its all-time high above $50 around the same time as the crypto rally in 2021.
From the two charts, we can deduce that the Polkadot crypto token has moved in the same direction as the overall crypto market, or at least has until now. Since BTC dominates the crypto market, its movements directly impact DOT’s performance.
The future of Polkadot: price predictions
Owing to its important use cases, the future of Polkadot seems bright. Moreover, a blockchain research group posted about an encouraging development on its social media profile. According to the firm, activity in the Polkadot crypto ecosystem has increased. If this trend continues, we can expect DOT’s price to surge.
Moreover, the DOT token’s significance for governance and staking is also a major factor for its potential high prices. However, the Polkadot crypto price faces stiff resistance at $9 currently.
But as far as predictions are concerned, analysts predict a Polkadot crypto price breakout to $15 soon.
A crypto data analysis platform also revised its Polkadot crypto price target to almost $25 by May 2024.
We could assume that once DOT breaches its resistance levels, it could climb to $15 within this year. Since DOT’s fear and greed index is neutral, investors may keep buying the token further. If a parallel crypto rally occurs, the effects could spill over to DOT and help it go upward.
Although it seems unlikely that the Polkadot crypto price will hit its previous all-time high ($54) soon, this possibility cannot be ruled out. As the Polkadot ecosystem keeps attracting more users, we may see a DOT rally.
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