After the announcement of the US election results, significant interest from investors has caused a general rise in the cryptocurrency market. This increase also applies to Polkadot, a prominent blockchain that offers faster and cheaper services. However, the token continues to struggle with value depreciation and challenges in the charts.
Analysis of Polkadot’s Price Performance
Polkadot has been part of the cryptocurrency market for four years and peaked during the 2021 bull market. Following that period, the DOT price entered a severe downward trend, with a decline of over 92%. Despite continuous updates and improvements to the blockchain, this trend has persisted.
Reasons Behind the Recent Surge
During this period, the token attempted several recoveries. It reached around $12 during the March rally but soon fell into a downward trend, entering a consolidation phase for months. Recently, however, it has shown signs of resurgence following Donald Trump’s victory. Technical indicators suggest a strong buying zone for the token.
At the time of writing, the DOT price stands at $4.3 and may be entering an upward trend alongside the general rise in the cryptocurrency market. Nevertheless, it has only increased by 5% today and 9% this week, which is relatively low compared to other popular cryptocurrencies. The ongoing consolidation and the cool attitude of investors have contributed to the price gaining value. Many believe that the Polkadot price rally is just the beginning.
$DOT is breaking the Falling Wedge formation after a prolonged downtrend. We expect a bull rally that could double the price in the coming days. Don’t miss the journey.
Another analyst acknowledges that the Polkadot price rally is ongoing, predicting that a healthy breakout above $4.2 will lead to new highs. While some commentators suggest that the price could reach $100, this currently seems unrealistic. Tony’s expectation of DOT reaching $15 by January is considered a more reasonable forecast.
The Polkadot development team is working on the Polkadot 2.0 update to enhance scalability and security levels. Improvements in the staking mechanism are also attracting investor attention, which could further contribute to the DOT price rally.
As investor interest returns, the trading volume of this token has increased by 18% over the last 24 hours, rising to $265.63 million. This increase indicates that investors are gravitating toward this token and that Polkadot’s price chart may be breaking a long-standing downward trend.
