|

Polkadot price prepares for comeback, shows signs of upside despite dropping TVL

  • Polkadot price has been consolidating consistently over the past month, posting losses. 
  • Total value locked in the Polkadot network plunged 78% within a month, alongside dropping prices. 
  • Analysts believe Polkadot could recover from the downtrend and make a comeback. 

Polkadot price (DOT) has posted consistent losses for a month. Analysts argue that the Ethereum-killer could recover from the downtrend. Though total value locked in the Polkadot network plunged, analysts believe that DOT price could make a comeback. 

Polkadot price could break out of the downtrend

Polkadot price has posted 8% losses over the past two weeks. Proponents believe Polkadot price could recover from losses and break out of its downtrend. 

Lease Period 7 has begun, and several parachains have connected to Polkadot's relay chain. 

Composable, Efinity, Nodle, Centrifuge, Interlay and HydraDX are connected to the relay chain. 

Interestingly, based on recent research, Polkadot has the lowest carbon footprint among PoS protocols, using the equivalent energy of 6.6 US households per year. This is driving the Ethereum-killer's adoption among users. 

Several metaverse projects are live on the Polkadot network, driving DOT demand and adoption higher. Despite a 78% drop in total value locked on the Polkadot network over the past month, analysts are bullish on the altcoin's recovery. Analysts have predicted a comeback in the Ethereum-killer's price trend. 

Technical indicators suggest a positive outlook on Polkadot price. Polkadot price is above the 50-day simple moving average, fueling a bullish narrative among investors. 

FXStreet analysts have predicted that the Polkadot price could return to $10.50. They argue that the Polkadot price trend has remained unchanged. A reversal column has been on Polkadot's chart for over four months now, and analysts are waiting on the pattern to play out. 

Analysts have set the price target at $100 through the vertical method and believe that the setup indicates an upcoming trend reversal. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Michael Selig assumes role as new CFTC Chair, what does this mean for crypto?

Michael Selig has been sworn in to serve as the 16th Chairman of the Commodity Futures Trading Commission. Selig was confirmed by the US Senate to head the commission last week, following his October nomination by the US President Donald Trump.

Crypto.com hires sports trader for event prediction market-making

Crypto.com plans to recruit a quant trader for the sports market-making team to buy and sell financial contracts related to these events. Opponents argue that internal trading desks put operators or their affiliates on the opposite side of customer trades. 

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.