Polkadot (DOT) Primed for Breakout? 60% Staking Rate Squeezes Supply as Analysts Eye $20+ Target
Polkadot’s demand is increasing due to a 60% staking rate that is reducing the amount of supply in circulation. Crypto analysts have noted this constricting supply as well as key bullish technical indicators. Tony Bitcoin and Crypto Tony both point to potential price targets and key levels for DOT. Meanwhile, recent data shows DOT gaining over 9% in the past week, signaling growing market interest in Polkadot’s ecosystem.
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High Staking Rate Impacts Circulating Supply
Tony Bitcoin, a crypto analyst, highlighted a crucial factor affecting DOT’s market dynamics. He noted that Polkadot’s staking rate has reached nearly 60%. This high staking percentage leaves only 40% of the total supply in circulation.
The reduced circulating supply could have implications for DOT’s price. As demand increases, the limited available tokens may lead to a sharp rise in value. This supply-demand dmetric creates an interesting scene for potential investors and traders.
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Polkadot (DOT) Price Analysis and Forecast
Tony Bitcoin also shared insights on DOT’s technical indicators. He focused on the Relative Strength Index on the weekly chart. The analyst suggested that if the RSI breaks above 53 points, it could potentially reach 70 points.
This technical breakout, combined with the limited circulating supply, might trigger a substantial price increase. Tony Bitcoin projected a possible price range of $20 to $24 for DOT. However, investors should always approach such predictions with caution.
Another analyst, Crypto Tony, provided a different perspective on DOT’s price action. He identified $6.82 as a key level for DOT/USD. Crypto Tony stated he would consider a long position if the price reclaims this level.
DOT Price Performance
According to data from CoinGecko, DOT’s recent price performance has been positive. The token, at press time, trades at BTC0.0001021. This represents a 1.36% increase in the last day and a 9.21% rise over the past week.
DOT’s daily trading volume hovers around $209,136,576.28. This volume indicates significant market activity and interest in the token. The recent price increases suggest growing momentum for DOT in the crypto market.
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