Sheldon The Sinper posted an analysis of Polkadot’s DOT to explain why he thinks the price of the crypto is going up following a key breakout.
The crypto analyst chart shows that the price of Polkadot has been going down and bouncing off a descending trend line, which has been a resistance since March. However, the price broke out of this trend line pattern six days ago, and it is now coming for a retest.
The analysis suggests that the new support is expected to hold the price, and this could trigger a price spike to around $8, which is the analyst’s main target. With the price of dots at around $4, a spike to $8 would represent a around 100% price increase.
A break above the resistance at around the $8 target could see the price spike to $10. But is this really possible looking at Polokadot’s current market cap of around $6 billion?
The price increase to $8 would take the crypto’s market capitalization to around $12 billion, and a spike to $10 would take the market cap to around $18 billion. How realistic is this?
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A Look Into DOT Price History
The last time Polkadot was at $10 was in March during the last bull rally. The rally started in October and ended in March. During this period, the prices of many major cryptos spiked, with Polkadot also increasing by around 200%.
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Show more +Looking at this, $10 doesn’t seem so far-fetched for Polkadot, even with its current market cap. If the retest of the broken trend line is successful and a rally is triggered, we could see a price spike to $8 that the analyst is targeting, and then eventually $10.
However, just like it happened in the past, we may need to see a more general bullish move from the wider crypto market for a sustained move toward and above this critical level.
With continued upgrades, forward-looking partnerships, and consistent growth, $10 does not look like a big deal for DOT.
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