Polkadot is primed for a breakout, popular crypto analyst says

Polkadot price has underperformed other major cryptocurrencies such as Bitcoin and Solana this year, but one analyst expects the price to make a strong comeback soon.

Polkadot (DOT) has fallen 65% from its peak this year, bringing its valuation to $6.2 billion. As a result, it rose from being among the top ten to the 16th largest cryptocurrency in the industry.

Polkadot’s performance mirrored that of Cardano (ADA), one of the largest ghost chains, whose token has fallen 60% from its year-to-date high.

One possible reason for this price movement is that Cardano and Polkadot are lagging behind companies like Solana, Sui, and Base in terms of development.

A closer look at Polkadot’s ecosystem reveals that it is significantly smaller than other chains. For example, Moonwell, which launched on Polkadot in 2022, gained little traction until it expanded to Base, where its total value locked rose to a record high.

Other major players in the Polkadot network such as Moonbeam, Acala, Phala Network, and Astar also did not scale as initially expected.

In response, Solana has become a major player in the blockchain industry, powering meme coins valued at over $12 billion, as well as various games and non-fungible token projects.

Base, the layer 2 network launched by Coinbase, has also become one of the top ten players in the decentralized finance industry.

Still, Ali Charts, a popular crypto analyst, expects the Polkadot price to recover soon, citing chart patterns.

A potential catalyst could be a new proposal known as the Westend, which would reduce DOT’s inflation from 10% to 8% by allocating 15% of these funds to the treasury.

The Westend testnet has been successfully upgraded to match the approved parameters. @polka dot Community in Change Wish Referendum #1139. Over the past few days the model has been performing as expected; inflation rewards drop from 10% to ~8% (annualized) and remain constant…

— Jonas (@GehrleinJonas) 29 October 2024

Polkdot techs sending mixed signals Polkadot chart from TradingView

Polkadot token has traded sideways in recent weeks. It remained slightly above the key support point at $3,853, which it has never fallen below since September.

DOT also remained below the 50-day and 100-day moving averages, indicating that the bears are currently in control.

Further upside will be confirmed if the price breaks above the descending trend line connecting the highest swings since August 14.