Polkadot’s native cryptocurrency, DOT, has emerged as a standout performer in the digital asset market, with analysts predicting a significant price surge.
Polkadot (DOT) faces downward pressure below the critical $8 resistance level against the US Dollar, signaling a bearish trend. Failure to hold above $6.00 could lead to further downside. After encountering strong selling interest near $7.60, the DOT price initiated a downside correction, echoing similar movements in Ethereum and Bitcoin.
The decline extended below the $6.20 support zone, resulting in a low near $6.03. The price is currently consolidating losses and showing signs of a minor recovery. It is now trading above $7.1 and the 23.6% Fibonacci retracement level of the recent decline from $7.58 to $6.03.
Over the past week, Polkadot’s DOT has experienced a notable surge in price, climbing by 10% in a relatively short period. This increase has caught the attention of analysts and market observers, who see this as a sign of bullish momentum building up in the DOT market.
The price surge has been attributed to several factors, including positive market sentiment, growing interest in Polkadot’s ecosystem, and overall market trends favoring altcoins.
Analysts Bullish on Polkadot Price Trajectory
Analysts have pointed out the potential for further gains in DOT’s price, with some predicting a spike to $10 in the near term.
One analyst, Ted on X, believes that DOT is retesting a major support zone and could reach $10 if it surpasses the $7 mark.
$DOT Price Update
It is currently retesting its major support level.
If it manages to close above $7, the next target is $10 pic.twitter.com/WjIYZLfDry— Ted (@TedPillows) May 1, 2024
Other analysts, such as CRYPTOWZRD and Jesse Olson, share this optimistic outlook. They see potential for DOT to exceed $9.60 and $15.80, respectively, in the coming months.
Analysts have compared DOT’s current price action to its performance six months ago. In November, DOT was trading at less than $5 before surging to almost $12 in mid-March.
Jesse Olson, in particular, has highlighted the similarities in price behavior, suggesting that the current conditions offer a similar buying opportunity as seen six months ago.
Several other analysts have also expressed bullish sentiments toward Polkadot and its native token, DOT. Ash Crypto, a popular analyst with a large following, has stated that he still holds his DOT stash and expects a rally toward a two-year high of $15.
Similarly, Michael van de Poppe has noted Polkadot’s “fundamental progress” and added DOT to his portfolio, anticipating a rotation towards the asset.
Polkadot Developer Activity Slows
Data sourced by ZyCrypto late last month revealed a decrease in developer activity on the Polkadot blockchain. Polkadot had 827 developers contributing to over 5,000 weekly code commits the week prior.
While Polkadot’s developer activity is not considered low, it falls behind other blockchains like Ethereum and BNB Chain. Ethereum, for instance, had over 2,000 weekly developers with more than 19,000 commits, while BNB Chain recorded over 6,000 weekly commits.
