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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.

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