Lorenzo Stroe
Independent Analyst
- Polkadot price is currently contained inside an ascending parallel channel.
- The Polkadot ecosystem has seen significant growth in the past month.
- The protocol is still in its infancy and has a lot of potential to grow more.
Polkadot has been one of the fastest rising cryptocurrency projects in the past year, reaching a market capitalization of $15 billion, ranked fourth. The Polkadot ecosystem includes significant projects like Ocean Protocol, Ankr or WalletConnect.
Polkadot price needs to defend a crucial support level to rebound
According to statistics from Coin98 analytics, over $10 worth of Polkadot coins are staked inside exchanges or wallets. In addition to the substantial number of coins locked, the Polkadot ecosystem has received a lot of interest from big players in the recent months including Binance, Huobi, and others.
3/9
— Coin98 Analytics (@Coin98Analytics) January 21, 2021
More and more VCs are interested in Polkadot, especially, there are some funds that only specialize in investing in projects in the Polkadot ecosystem such as Web3 Capital, Hypersphere, KR1, Polychain Capital,.... pic.twitter.com/XyR719Kn5I
DOT has established an ascending parallel channel on the 4-hour chart and bulls are just defending the lower support trendline at $15. Successfully holding this level can quickly push Polkadot price towards the middle of the pattern at $17.15.
DOT/USD 4-hour chart
To give credence to this bullish outlook, the TD Sequential indicator has just presented two buy signals on the 2-hour and 3-hour charts.
DOT buy signals
However, it is still entirely possible for the bears to push Polkadot price through the support level at $15. This breakdown can lead to a 20% move to the downside with a price target of around $12.
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