- Summary:
- In this Polkadot price prediction, we explain why bulls of the digital currency have a lot to prove in the near term after it formed a double top
The Polkadot price is bouncing back after it crashed by almost 20% in the past two days. DOT price is trading at $40.97, which is almost 10% above yesterday’s low of $37.85. Its market cap is at $38 billion, slightly lower than Cardano.
Polkadot news: Polkadot has been in the headlines lately as more developers chose the blockchain network for its speed, cost, and stability. On Wednesday, Tether announced that it would launch its USDT stablecoins on Polkadot and Kusama’s network. The organization did not announce the date when this will happen.
Similarly, KwikSwap, a new Decentralized Exchange (DEX) said that it would launch the first cross-chain network on Polkadot and Ethereum. Meanwhile, according to CoinTelegraph, Polkadot futures open interest has recently jumped to $1 billion, which is a sign that demand is rising.
The Polkadot price also declined because of the overall weakness in the industry as calls for more regulations grew and as US Treasury yields rose.
Polkadot price prediction
On the four-hour chart, we see that the DOT price formed a double-top pattern at its all-time high of $46. The neckline of this pattern was at $40.7, which it also crossed in the overnight session. In technical analysis, a double-top pattern is usually a bearish sign. This means that bulls have more work to do to ensure that the price continues to rally.
Therefore, in my view, the Polkadot price bullish trend will continue if bulls manage to move above the double-top level at $46.30. There is also a possibility that the current rally is a dead cat bounce, which happens when the price is about to decline.
DOT price chart
