- Polkadot price prediction expects $6 within the next five days
- Resistance level found at $6.1
- Support level found around $4.5 in late November
- Low volatility suggests bullish momentum returning
- PolkaBTC currently in alpha testnet phase
Polkadot price prediction: DOT price
Polkadot (DOT) price saw highs of $6 just over one week ago and has been recovering from its fall to $4.5. DOT price saw a significant rise through November but rose too quickly and saw a 25 percent pullback by the 26th of November 2020.
These figures and fluctuations in price closely follow the pattern expressed by the Bitcoin (BTC) and Tether (USDT) trading pair in recent weeks. As BTC still holds around 60 percent dominance in the crypto market, this repercussion pattern is set to repeat if Bitcoin charts a more bullish spike soon. In turn, DOT price would, in that case, follow suit, perhaps reaching towards $10 in early 2021.
At the time of writing, DOT price is steady around $5.48 and remains bullish through the morning so far.
Use the oscillator below to see what role DOT might play in your portfolio
Polkadot price prediction: 1-Day chart
The 1-Day chart shows two vertical yellow lines, depicting spikes in volatility, volume, and steep falls in DOT price. This can be seen on the 21st of September and the 26th of November. The latest DOT price dip follows the Bitcoin bearish activity and now proceeds bullish into early December.
Seeing a resistance level of $6.1 over a week ago, DOT price is expected to be growing towards the upside of $6. Volume has remained steady for DOT/USDT in the last seven days – down more than 40 percent since the 26th of November 2020.
Polkadot price prediction: 1-Week chart
As Polkadot was only introduced to trade and Binance in August, the 1-Week chart still lacks historical data to compare DOT/USDT prices. This said, we can still utilize this data to fathom some direction for DOT price soon.
What we can see here is bullish momentum from November into December 2020 as bullish volume grows. Alongside this, the Historical Volatility (HV) and the On-Balance-Volume (OBV) indicators help stipulate near-future direction. As volatility seems to be decreasing with bullish movement and the OBV sees a steady increase, DOT price looks set to rise further.
Polkadot price prediction: DOT price to find support level beyond $6 if Bitcoin bullish trend persists
Bollinger Bands (BBs) show steady DOT price progression above the BBs Basis mid-line with a slight dip below in late November. Recovering steadily, the BBs show no signs of DOT price touching down towards the BB Lower line soon, unless strong bearish activity affects the market.
Volatility and volume cooperatively indicate little sign of bearish activity to come as volatility decreases, and volume remains bullish. It is safe to say that DOT price should remain on this path unless sudden changes in the market manifest or Bitcoin suffers another strong pullback as witnessed on the 25th November 2020.
In conclusion, DOT price is expected to reach beyond $6 soon and find support there to even higher levels. As an open-source sharding multichain protocol, Polkadot provides a fully decentralized and interoperable platform. Connecting public and private blockchains, oracles, and more – Polkadot bridges many market and scalability gaps that users have been seeking for some time now.
With the introduction of PolkaBTC in the works and the progressive bullish movement seen above, Polkadot displays strong investment potential and solid fundamentals. The PolkaBTC is currently in it’s Alpha testnet phase and expected to be in its Beta testnet (inc. Oracles and XCMP) by early 2021.