Like many altcoins over the last few weeks, Polkadot (DOT) has seen quite some decline in what has been a market-wide crypto sell-off. The coin in fact had a mini-crash early in December. But despite this, Polkadot (DOT) has been retracing some gains and appears to have consolidated. Is a 20% rally on the cards? Well, first, here are some facts:
Polkadot (DOT) has been swinging over and below $24.35 since the early December crash
Swing lows during this wild period have not gone further away from $24.35, but swing highs have rallied
It is increasingly likely that Polkadot (DOT) will test the $24.88 support level before a possible breakout
Data Source: Tradingview.com
Polkadot (DOT) – price action and predictions
At the time of publishing, Polkadot (DOT) was trading at $25, according to Coinmarketcap.com. It is clearly above the $24.88 support level, albeit slightly. But if we are to see any rally, the coin will need to retrace gains and break the $29.54 resistance in the near term. This would still be 16% higher than its current price.
Analysts feel that momentum could start building after that, with conservative estimates putting DOT well above $31. If indeed this happens, it will be a 20% upswing. The big question, though is how fast can this happen. A highly charged bullish surge looks unlikely right now given the headwinds we have seen in the market recently. But $ 30 is very feasible by Christmas.
Should You Buy Polkadot (DOT) Today?
Polkadot recently announced multiple parachain launches with over $3.5 billion already staked. This is a huge deal and could suggest the long-term growth is well intact. Polkadot (DOT) has also typically ranked among the top 10 or 15 cryptos by trading volume. Although right now it’s experiencing some price fluctuations, it’s still a good long-term bet.