Polkadot Price Analysis
Polkadot price is hovering near its all-time low as the crypto sell-off accelerates and the fear and greed index remains in the extreme fear zone.
Polkadot (DOT) coin has crashed to a low of $3.60, where it has failed to drop below since December 2022. It has dropped by over 93% from its all-time high.
Potential Catalysts for Polkadot
Polkadot has three potential catalysts that may push it higher in the longer run:
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Polkadot 2.0 Upgrade: Developers are working on its biggest upgrade since inception. It introduces three key concepts:
- Async backing: Increases parachain throughput by 8x to 12x.
- Agile coretime: Allows flexible block space allocation, replacing traditional parachain auctions.
- Elastic scaling: Set to launch this month, currently being tested in Kusama, allows dynamic adjustment of network capacity to meet transaction demands.
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Spot DOT ETF Approval: Polkadot price may rebound ahead of a spot DOT ETF approval by the SEC, with companies like 21Shares and Grayscale Investments having applied for this approval.
Polkadot Price Technicals
The DOT price chart shows strong support at $3.60, which has held since 2022, indicating resilience during the current crypto sell-off.
There are signs of a quadruple bottom with a neckline at $11.90, a bullish market indicator. The recent decline shows a falling wedge pattern, suggesting a shift towards an accumulation phase according to the Wyckoff Theory. This phase is typically followed by a markup phase where demand surpasses supply.
Thus, there’s a likelihood of a strong bullish breakout, with an initial target of $11.90, which represents about 200% upside from the current level.
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