Making a case for 40% rally in Polkadot price as DOT development activity hits an all-time


  • Polkadot price looks bullish from both short-term and long-term outlooks.
  • An 11% upswing to $6.89 seems more than likely on the lower timeframe.
  • Invalidation of the bullish outlook for DOT will occur on the breakdown of the $5.75 support level.

Polkadot (DOT) price shows a clean double bottom formation on the daily timeframe, which predicts a potential bullish reversal. If this outlook is followed by a spike in buying pressure, a quick upswing is likely for DOT. 

Read more: Ethereum Shanghai Upgrade is nearing; what to expect from ETH and LSD tokens

Polkadot price reveals positive outlooks for DOT holders

Polkadot price on the daily chart shows that the $6.36 to $8.78 range formed in mid-June 2022 is crucial. A close observation reveals that this range has clearly defined breakouts in the past. From a long-term perspective for DOT, investors could expect a retest of the range’s midpoint at $7.57. 

A decisive flip of this hurdle on the daily timeframe could open the path for Polkadot price to tag the range high at $8.78. This move, in total, would constitute a 38% upswing.

DOT/USDT 1-day chart

DOT/USDT 1-day chart

A four-hour chart shows that traders can capitalize on a much smaller rally for Polkadot price. Interested investors can accumulate DOT at the current level and look for acceptance above the long-term range’s lower level at $6.36. 

A successful move would allow DOT to trigger a quick run-up and tag the 62% retracement level of the 35% crash witnessed between February and March 2023. This move would constitute a 10.6% gain for traders. 

In some cases, Polkadot price might extend to retest the 70.5% retracement level at $7.08, bringing the total gain to 14.4%. 

DOT/USDT 4-hour chart

DOT/USDT 4-hour chart

Supporting this bullish outlook for Polkadot price is the Development Activity, which hit an all-time high of 358.57 on March 21. This index tracks the pure development-related activity by DOT developers in the project’s public GitHub repository.

This uptick from 117.14 on January 8 suggests that developers have been working on the improvement of the project. Often, investors consider this index as one of the signs before buying the project’s underlying token. A project that’s bustling with developer activity suggests a safe investment and a spike in development activity supports a bullish outlook for the underlying token. 

DOT development activity 

DOT development activity 

While the bullish outlook for Polkadot price is clear, investors should note that the invalidation level is $5.75. If this support structure is flipped into a resistance barrier, it would attract sellers and potentially trigger a 5% crash to $5.47. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high

Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high

Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.

More Bitcoin News
Cardano breaks above descending trendline, eyes April high as bullish momentum builds

Cardano breaks above descending trendline, eyes April high as bullish momentum builds

Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.

More Cardano News
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut

Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut

Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.

More Cryptocurrencies News
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.

More Bitcoin News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP