Polkadot price prediction: here’s why DOT may surge 500% soon

Polkadot price has crashed in the past few years and is now hovering near its all-time low. DOT traded at $4.95 on Thursday morning, down by 56% from its highest level in November last year. Let’s explore some of the top reasons why the Polkadot coin may bounce back soon. 

Polkadot price has strong technicals

The first main reason why the Polkadot price may be on the cusp of a multi-year bullish breakout is that it has strong technicals, especially on the weekly chart.

This chart shows that the DOT price has remained in a three-year consolidation phase. It has remained inside the key support at $3.65 and resistance at $11.65 in this period. Attempts to drop below the support have failed four times, while those to have a strong bullish breakout above $11.65 have failed two times. 

This price action is a sign that the coin has formed a quadruple bottom, which is an extended version of a double-bottom pattern. Therefore, using this pattern alone, and the fact that the coin has failed to drop below $3.65 at least four times, there are signs that it will have a bullish breakout soon.

There are signs that the Polkadot price is going through an accumulation phase. One of this sign is that the accumulation and distribution indicator has continued rising during this consolidation. 

The accumulation phase is usually the first part of the Wyckoff Theory. It is then followed by the markup phase, which has higher demand than supply. Therefore, in this case, there are signs that the Polkadot price will get to the markup phase in the coming weeks. 

Such a move will be confirmed if the coin rises above the key resistance at $11.65, which is about 126% above the current level. A break above that point will see Polkadot price jump to $30, the 50% retracement point that is about 500% higher than the current level.

This view is further confirmed by the fact that Polkadot price will start the Elliot Wave pattern soon. The first part of it is bullish, and may see it rise to $15, the 23.6% retracemenr level. It will then go though a brief pullback, and then enter the third bullish phase to $30.

DOT price chart by TradingView

Catalysts for the DOT price

There are a few catalysts for the Polkadot price. First, there are high odds that the Securities and Exchange Commission (SEC) will approve a spot DOT ETF later this year. 

Besides, it is one of the biggest players in the crypto industry with a market cap of over $8 billion. It is also a Made in the USA cryptocurrency and has similar features to other tokens like Ethereum and Cardano. 

Second, Polkadot is one of the most energy efficient blockchain network in the crypto industry. This is an important aspect because many companies are considering their carbon footprint when selecting their blockchain providers. 

Third, Polkadot price may surge because it is going through a comprehensive upgrade as part of the Polkadot 2.0 process. The new Polkadot will be different than the initial one. For example, it will have EVM features, allowing developers to build on top of it easily. 

In the past, developers had to go through a prolonged and expensive parachain auction process to have their apps in the network.