Market price action is the basics for the technical analysis of a coin. Most short term traders use price action to determine when to get in and out of trade using support and resistance. Rather than focusing on the fundamental factors that influence the price movement of a market, price action focuses on the market’s price history.
This method is what most traders use in signal groups to predict the price of a coin. However, in this Polkadot price prediction guide, we will see how we could use price action to determine DOT's long-term value.
Before diving into Polkadot price prediction, let's take baby steps and first examine the project. One of the first things you should concern yourself with as a long term holder of a coin is the integrity of the project as that would influence the price in the coming years.
Polkadot is a unique blockchain protocol built to support multiple chains within a single network. The protocol is specifically built to solve the blockchain trilemma, ensuring that transactions are decentralized and secure while still being scalable and interoperable. Polkadot is supported by the Web3 Foundation and developed by Parity Technologies.
Polkadot is founded by Gavin Wood and Jutta Steiner, both of who are former Ethereum executives. To improve scalability, Polkadot operates two types of blockchains, the Relay Chain, which is the main, and the Parachain, from which users will feed into the main network. This design will ensure the security of the network and ensure that transactions are scalable. In this Polkadot price prediction guide, we will see how market price action can help us determine DOT's price in the nearest future.
PolkaDot Historical Price Analysis
The Polkadot Foundation launched its first ICO round in October 2017 and raised about 140 million dollars. However, after selling 10,000,000 DOT, half of its stock, the company ran into a loss and had to carry out two more sales rounds in 2019 and 2020. At its launch, Dot started its price journey at $6 and then crashed to $2.81. Although in September 2020, the price of one DOT reached $6.11, it would drop to as low as $4.95 by December 2020.
However, by January 16, 2021, Dot hit a new all-time high, reaching $19.05. However, this new ATH was a result of redomination of DOT tokens. During the ICO, users who bought a $30 coin were offered $100 new coins for $6, making the average price for a single coin $600. DOT’s market cap rose from zero to over $5 billion within a day and even reached the top 10 crypto ranking.
Current Price, Market Cap, & Supply Details
As of the time of writing, DOT's price is $17.51, with a 24-hour trading volume of $3,387,502,065 USD. DOT is currently ranked number 4 on the coin market cap and has experienced a downward trend of 3.95% within the last 24 hours. DOT has a market cap of $14,499,126,403 and a circulating supply of 902,337,018 DOT.
Yet, its max supply is not known. To actively trade XLM, you will find it in exchanges such as Binance, BiKi, Huobi Global, OKEx, and BitZ. DOT had its last all-time high on January 16, 2021, at $19.05 and is currently down by -15.6%, while its all-time low was on August 20, at $2.70 496.
PolkaDot (DOT) Future Price Forecast Predictions
One of the factors that influence the bull run of a coin aside from high demand for that coin can be the activities of the team. The Polkadot team carried out a redistribution of coin to its earlier investors and this triggered a spike in the market. However, what does the future hold for this token? Some experts have based their predictions on varying factors, from technical analysis to artificial intelligence-based predictions.
Coinpedia believes that by half of the year 2021, DOT will rise further by 25% and then close the year at $10. However, In 2025, Coinpedia predicts that DOT will reach $42, an increase over 200% from its current price as at the time of writing. On the other hand, analysts at Digitalcoinprice, expect an increase over $20 early in 2021, and by 2022, the price of DOT will reach $26.
Walletinvestor has a totally different prediction and sees a fall in the price of DOT over 90% in the following years. CoinArbitrageBot is positive in its prediction as it sees DOT hitting $40 in 2024.
Short Term Forecast
Long Term Forecast
*This price prediction is based on the data collected from various sources meant strictly for educational purposes only and not taken as investment advice. Users should do their own research before investing.
PolkaDot Price Prediction 2021
By the end of the year 2021, using forecast, algorithmic analysis, and price action, we predict that one Polkadot (DOT) will reach $19.76, which will be an impressive 48.53% growth within the year.
PolkaDot Price Prediction 2022
We predict a 15% increase in DOT's price by the end of 2022, and one Polkadot (DOT) could be worth about $23.25. This will be a 15%% increase in price with more expectation of upward growth.
PolkaDot Price Prediction 2025
Polkadot aims to create a network where multiple blockchains can interact and still remain scalable and secure and by the end of the year 2025, we predict that the price of DOT could hit $45.62. It may be a slow year, but it would end with DOT resting at a 21.59% increase.
Is PolkaDot a Good Investment?
Many factors determine the success of a coin, and these factors range from the team, use cases down to the current state of the market. However, there is no certain way to determine which coin will be a good investment. Nevertheless, Polkadot seems to be a fair investment. It has managed to gain steady growth since its launch and holds a lot of potential where scalability is concerned.
However, long term holders must also note that the value of a coin can be influenced by FUD as well as FOMO and therefore take this into consideration when staking on a coin for long term investment purposes.
How to Buy PolkaDot?
Before considering buying a coin, an investor needs to sort the Wallet with which the coin will be stored. Although short term holders or traders usually keep their coin on an exchange to enable the ease of transfer when it becomes time to sell. However, you can store your DOT on wallets such as Cobo wallet, Guarda wallet, TokenPocket, Swipe wallet, Trust wallet, Lunie wallet, PolkaWallet, and Parity Signer.
STEP 1: Set up a Binance account and complete the setup process including your 2FA verification process for security.
STEP 2: Fund your wallet by depositing USD to your wallet using a bank transfer or your credit card.
STEP 3: Convert your USD to BTC or ETH and then buy DOT with it.
You can now hold or trade your DOT. For long term holders, you can transfer your DOT to any wallet of your choice. Short term holders can trade DOT on exchanges by using price action to determine the movement of the price.
More Information About Polkadot
What is PolkaDot?
Polkadot is a multichain blockchain protocol that enables side chains to connect with public blockchains by simplifying communication and interoperability. Polkadot allows multiple side chains called Parachains to connect to the main network called the Relay chain, thereby ensuring that transactions are scalable and secure.
Polkadot was founded in 2016 by Gavin Wood (a co-founder of Ethereum), Peter Czaban, and Robert Habermeier. Polkadot is developed by Parity Technologies, a company founded by Gavin Wood and Jutta Steiner in 2015. The first code for Polkadot was published in 2017 on GitHub, and in 2018, two proofs-of-concept while Polkadot’s first parachain was deployed in July 2018. However, active trading of the DOT started in August 2020.
To ensure scalability, transactions are finalized in the Relay Chain, Polkadot’s main blockchain. According to 2020 testing, Polkadot can process over 1,000 transactions per second by using its relay chain to separate the addition of new transactions from the actual act of validating those transactions.
On the other hand, the Parachains use the Relay chain's computing resources to confirm that transactions are accurate. To connect to other blockchains, Bridges allow Polkadot to communicate and exchange tokens with other blockchains like Ethereum, EOS, Cosmos, and Bitcoin. From this Polkadot price prediction, we have seen that the activities of the
Polkadot has a team of experienced Co-founders and is the flagship project of Web3 Foundation, a Swiss Foundation focused on facilitating a decentralised and functional web. Polkadot also has researchers from Inria Paris and ETH Zurich, partners from Polychain Capital as well as developers from Parity Technologies working at its core courtesy of Web3 Foundation.
Polkadot has three co-founders, Thiel Fellow and long-time member of the Rust community, Robert Habermeier, Dr. Gavin Wood, who is also co-founder and CTO of Ethereum, and Peter Czaban, Technology Director of the Web3 Foundation. From this Polkadot price prediction, we can see how the activities of the team can influence the price of a token.
Polkadot had a good start for a coin that started trading towards the end of 2020. It has great potential and although it is not an ERC-20 token, it rose up to number 4 on the market cap ranking impressively. Polkadot is currently working toward fulfilling its plans on its roadmap.
Hopefully, completion of its roadmap may influence its price toward an upward rally. PolkaDot is already getting great reviews and was featured as one of the 10 diverse projects in ‘Scanning the European Ecosystem of Distributed Ledger Technologies for Social and Public Good” However, in the coming years, this Polkadot price prediction guide predicts a growth in the price of DOT that would likely reach an all-time high of nearly $45. Hopefully, Polkadot improves on delivering on its scalability promise as this will result in low transaction fees and faster transactions amongst blockchains.