What do chain data and technical analysis indicate for DOT price?

Several altcoins have given up their recent gains this week amid rising geopolitical tensions, with Polkadot (DOT) facing similar challenges. The latest market correction pushed the price of the altcoin down to $4.04, a drop of more than 14% in just three days.

At times like this, it’s important to take a step back and examine some of the fundamentals and trader sentiment around the conclusions of popular industry analysts.

Chain polka dot

One of the most important on-chain metrics that track network activity over time is the number of daily active users and new users joining the ecosystem.

While the number of new accounts on Polkadot has remained relatively flat since May of last year, the number of active users has increased by more than 25%.

Source: Subscan

The amount of DOT transferred daily has also increased significantly during this period, showing that the network is processing larger transfer volumes.

Source: Imminent Subscan Breakup DOT: Are Investors Ready?

Analysis indicates DOT is poised for significant disruption. The altcoin appears to be nearing the conclusion of its rally phase and could be on the verge of breaking out of a long-standing falling wedge pattern.

According to their findings, recent moves in large caps suggest that the DOT is poised to follow this trend, so it’s only a matter of time before it experiences a substantial shift to the upside. The intended targets for this breakout, which indicate key resistance levels, are set at $11.83, $18.41, $26.30 and $37.53.

“With more than 600 days below the key zone, Polkadot is gearing up for a major push.”

Source: X

Another market watcher, Lucky, also highlighted a similar promising outlook for the DOT in its latest technical analysis. He said the asset is nearing the end of its annual build-up phase, which could push the DOT price to “take off” soon.

An outrageous scenario based on historical similarities

According to the latest analysis by investment firm TradingShot, the DOT could be on its way to a significant price increase, which could reach $200 by the end of 2025. The analysis suggests that Polkadot is following a cycle-like pattern 2018-2021 of Ethereum Classic (ETC).

As shown on a one-week chart, both assets have almost identical RSI sequences. Lower highs and double tops lead to a bearish market, followed by an RSI bottom that triggers a break above the one-week MA50 and the 0.5 Fibonacci retracement level.

Source: X

Polkadot’s RSI is currently hovering around 40.00, a key level that marked the start of a parabolic rally in Ethereum Classic. If Polkadot mirrors this cycle, it could rise aggressively towards the 1.5 Fibonacci extension, reaching $200 by the end of 2025.

Disclaimer: CryptoPotato has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. Although the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.

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