The recent Polkadot price surge has stalled near its highest level since July 14 as investors wait for the next catalyst. DOT, the 18th biggest cryptocurrency, was trading at $5.85 on Monday, up by 60% from its lowest level this year.
Analysts are bullish on Polkadot price
Crypto analysts are bullish on Polkadot price as the crypto bull run continues. One reason for the ongoing optimism for the Polkadot token is that some of its top peers have either risen to their all-time highs or their multi-year levels.
Cardano has jumped to its highest level since 2022, while Solana is nearing its all-time high of $260. Bitcoin price has also jumped to a record high of $93,200, making it one of the best-performing assets in the last decade.
Therefore, analysts believe that it is just a matter of time before the Polkadot price stages a strong rally. In an X post, Skew noted that the ongoing price action mirrored what happened in 2021 and predicted that it would jump to $9, which is 60% above the current level.
Another analyst, Crypto Lalit, predicted that the DOT token price would jump to $11, implying a 90% surge from the current level.
One of the noted catalysts is that DOT has an inflation rate of less than 8% and is constantly moving towards zero. Inflation refers to the number of new DOT tokens that are released in the market periodically.
The main challenge for the Polkadot price is that the ecosystem growth has not been all that strong. Instead, the blockchain industry is dominated by the likes of Ethereum, Solana, Base, Arbitrum, and Avalanche.
Polkadot’s developers have changed their approach to attract more developers. One of these approaches has been to let developers deploy dApps without the need to go through the parachain auction process.
DOT price analysis
The daily chart shows that the DOT price bottomed at $3.81, where it formed a double-bottom pattern whose neckline was at $5, its highest level on August 24.
Polkadot price has formed a break and retest pattern, a popular continuation sign. It has also jumped above the 23.6% Fibonacci Retracement level and the 50-day moving average. The Relative Strength Index (RSI) has pointed upwards.
Therefore, the Polkadot price will likely continue rising as bulls target the 50% retracement level at $7.73, which is about 35% above the current level.
