Polkadot, DOT price analysis

DOT is a blockchain that was launched in 2016. It was co-founded by Ethereum’s former Chief Technology Officer (CTO), Gavin Wood.

DOT allows developers to build their own custom interoperable parachute(s), or blockchains, deployed from the mainnet of Polkadot.

Each parachute(s) connects to a main relay chain and can communicate and participate in the mainnet’s security measures.

Some of the advantages of developing on the platform include:

• Parachains have their own modified PoS consensus mechanism.
• Dapp(s) development and tokens are available on the platform.
• Space for a parachute(s) is limited and is regularly auctioned for DOT, the native cryptocurrency token of the platform. 

 The most objective of Polkadot is to illuminate the issue of interoperability, 

For example:- The state where diverse blockchains cannot interact with each other. 

Polkadot links many blockchains together using a unique mechanism known as “parachains.” Parachains are distinct blockchains that are able to communicate with one another using Polkadot’s relay chain.

Transferring assets and data between several blockchains is made possible using parallax. This makes it simple for developers to construct cross-blockchain decentralized applications or dApps.

Price of DOT today

Polkadot is currently trading at $4.34822 per share (DOT/USD). The market cap is $4.99 billion USD. There was $171.25 million USD traded in 24 hours. The price of polkadot from DOT to USD is updated on a real-time basis. Polkadot is up 4.69% over the past 24 hours. The circulating supply is 1.24 billion USD.

In a daily time frame, the price has broken the resistance trendline of the downward channel. we have to wait for a successful retest then it can go further upward.

Historical Price Performance

The price of Polkadot has seen a dramatic increase since its inception in 2020, beginning at a price of approximately $2. It reached a peak of $49 in May 2021, which was its highest-ever price. Subsequently, the price decreased significantly, similar to the trend of most other cryptocurrencies. Despite the decrease, the price was able to stay within the $15 range in July.

POLKADOT Price Predictions

POLKADOT (DOT) might reach its 52-week high of USD 7.87000 if the price is able to maintain its rising trend and break over the 9–40 Day Moving Average (MA). The bullish milestone of USD 9.37617 might potentially initiate a big upward surge in the price of DOT. The 14-day Relative Strength Index (RSI) of 80 indicates that should the price of DOT drop below the primary support level of USD 6.24007, it may go toward the subsequent support level of USD 5.79181. Additionally, DOT’s price may drop much lower below USD 5.73658, the 50% retracement of the 52-week highs and lows.

Polkadot (DOT) Technical Analysis

After a short-lived breakout from the falling wedge pattern, the price was unable to break through resistance around 4.20 and retraced below the key level of 3.90, forming a new low, indicating a new bearish trend. 

The momentum is mixed as the MACD line is above the MACD Signal line (bullish), but the RSI is ~50 (neutral).

The nearest support zone is around $3.70, and the nearest resistance zone is around $2.80.

The Fibonacci resistance level is $2.80, and the Fibonacci resistance is $2.90, followed by $2.20, $2.50, and $3.00.

The current range of prices for the polkadot (Dot) is $3.8996 to $4.3376, exhibiting a variety of intriguing market characteristics.

 A string of significant turning points and support levels, together with a 14-day Relative Strength Index (RSI) threshold of 80% that indicates an asset could be overbought and might see a downturn, define the coin’s trajectory.

The coin’s immediate resistance level is $7,61307, while the critical support level is $5,73658, which represents 50% of its 52-week highs and lows.

Polkadot (DOT) Fundamental Analysis

The recent developments at Parity Technologies point to a bullish outlook for the future of Polkadot. Their decision to decentralize, combined with the Web3 Foundation’s financial contribution of 20M Swiss francs (USD) and 5M DOT tokens, shows a concerted effort to strengthen the growth strategies of the company.

 As the ecosystem continues to grow, so too do the staking metrics of the company. The emergence of nomination pools speaks volumes about the growing community of the company. Record-breaking events on-chain, a rise in unique accounts, and strong development activity all point to a growing ecosystem.

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Conclusion

The crypto market is likely to experience significant changes in the near future, and the decentralized vision and growth indicators of Polkadot make it a coin to consider. However, as with any investment, potential returns must be balanced with potential risks.

Therefore, while the future of the Polka Dot appears to be promising, it is important for any prudent investor to consider both positive and negative scenarios. Despite the positive outlook of DOT, a comprehensive approach that takes into account both bullish and negative scenarios will ensure a prudent approach for investors.