Bitcoin
BTC$49 193.22

-7.23%

Ethereum
ETH$4 116.36

-1.41%

Binance Coin
BNB$561.89

-4.29%

Tether
USDT$1.001881

0.18%

Solana
SOL$196.65

-3.68%

Cardano
ADA$1.39

-8.99%

Polkadot (DOT): The Correction Bottom Is Yet to be Found


November 2020

Polkadot (DOT) had entered the market in a great way by exploding 241% to the upside - from $2 to $6.86 - and joining the group of top 10 cryptocurrencies right off the bat. It seemed that the coin that is one of the main pillars of the sharded multichain network was destined to travel to even greater heights, but then the September dump happened, which tipped the scales in bears' favor.

DOT historical chart

After the price had collapsed from $6.86 to $3.78 (a 48% devaluation) in just four days, it became clear that DOT's second trip "to the Moon" was delayed indefinitely. DOT is presently priced at $3.95 after making 0.48% to the downside in the last 24 hours. Nevertheless, even such a vehement bearish pressure couldn't knock DOT to the ground as the altcoin retained the high position in global ranks - right now, it occupies the 8th spot - though it did skim off a significant portion of market capitalization that went from $5.2 billion, recorded at the climax of the bull rally, to the current $3.36 billion. In the last couple of weeks, the average trading volume was notably stable, fluctuating from $320 million to $408 million, which translated to dull price action in a tightening range.

Polkadot is evidently far from realizing its potential of top gainer to the fullest extent, especially in the context of the recent price dumps in September and October, but given its great fundamentals, and the fact that it poses the real competition to Ethereum in terms of being a host network to smart contracts and dApps, we are reasonably certain that $6.86 doesn't constitute DOT's highest-ever value. 

Seeking the bottom of the correction


Since there isn't enough historical data for proper analysis on the macro (weekly) time frame, we will carry out the Polkadot price prediction on the daily chart where we see the price ping-ponging between the descending support line and the middle line of Bollinger Bands.

Daily DOT/USDT chart

In addition, Polkadot seems to be very respectful of the 25-period exponential moving average, which further reinforced the resistance above the price action. However, the fact that the buyers aren't letting the price slip below $3.51, while the sellers are tightening the lid, significantly increases the probability of the volatility burst that is likely to have a bullish bias to it, given that DOT would rise above both 50 EMA and the middle line of Bollinger Bands.

Besides, the BB indicator is forming a squeeze that confirms our expectations of the approaching period of high volatility, though that squeeze could also extend in time that would result in the protracted period of consolidation between the designated price levels, and force Polkadot to new lows, presumably at $3.09, the first resistance during the August rally.

The 14-period RSI has bounced off the edge of the oversold area to the upside and has evidently found the resistance at 51, which it needs to overcome in order to confirm DOT's bullish intentions.

To summarize, Polkadot is still looking for the correction bottom, though the most obvious one lies at $3.09. Once it's found, we expect the price to explode to the upside in an attempt to take out the current ATH.

Author: Alex Paulson for Crypto-Rating.com

Related

Polkadot (DOT) Might be the Next Big Thing
Polkadot (DOT) Might be the Next Big Thing

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 71.6% 50 $49 193.22 -7.23% -9.28% $929 329 350 425 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 81.2% 36 $4 116.36 -1.41% 2.01% $488 235 923 439 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 80.8% 32 $561.89 -4.29% -4.45% $93 723 146 872 BNB 7 days price change
4 Tether (USDT) USDT Tether predictions 94.4% 1 $1.001881 0.18% 0.13% $74 297 173 480 USDT 7 days price change
5 Solana (SOL) SOL Solana predictions 71.6% 62 $196.65 -3.68% 5.13% $60 103 456 849 SOL 7 days price change
6 Cardano (ADA) ADA Cardano predictions 67.2% 72 $1.39 -8.99% -7.87% $46 392 712 007 ADA 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 91.2% 2 $1.000412 0.03% 0.07% $40 042 314 055 USDC 7 days price change
8 XRP (XRP) XRP XRP predictions 68% 66 $0.833702 -8.59% -10.36% $39 390 183 603 XRP 7 days price change
9 Polkadot (DOT) DOT Polkadot predictions 63.2% 76 $28.88 -12.51% -15.64% $28 521 499 285 DOT 7 days price change
10 Terra (LUNA) LUNA Terra predictions 68% 62 $72.27 18.51% 68.39% $28 015 046 896 LUNA 7 days price change
11 Dogecoin (DOGE) DOGE Dogecoin predictions 67.2% 73 $0.173763 -11.84% -13.14% $23 003 781 874 DOGE 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 63.2% 75 $90.60 -13.00% -15.64% $21 989 955 830 AVAX 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 65.2% 76 $0.000036 -8.82% -3.38% $19 811 050 065 SHIB 7 days price change
14 Crypto.com Chain (CRO) CRO Crypto.com Chain predictions 59.2% 86 $0.599768 -2.91% -17.36% $15 151 941 276 CRO 7 days price change
15 Binance USD (BUSD) BUSD Binance USD predictions 94.8% 1 $1.000770 0.14% 0.03% $13 610 910 664 BUSD 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.