Is Polkadot (DOT) The Next In Line For Parabolic Rally?

Polkadot’s native token, DOT, is currently in a rebound mode amid positive sentiments in the general crypto ecosystem. With an over 4% surge in the last 24 hours, DOT’s potential rally seems inevitable. In consonance, market analysts predict an immense upside for Polkadot.

Polkadot Current Price Trend and Fantom Link

In a recent X post, popular onchain analyst Ali Martinez forecasted a bullish rally for DOT. The analyst likens Polkadot’s recent movement to that of Fantom (FTM). He shared a chart that indicates that DOT is trending in a similar way as FTM.

Martinez claims Polkadot is undergoing a series of price movements, potentially leading to a breakout soon if it continues to follow Fantom’s patterns. The analyst’s forecast follows Fantom’s previous price behavior, which saw a substantial rise before a retracement.

Martinez thinks DOT could be on a similar path, with key resistance levels and profit-taking opportunities in view. The analyst suggests DOT could first climb to $9.7, a key resistance level, following Fantom’s footsteps.

If this happens, DOT may witness a pullback at $6.7 before breaking out to $20. This movement aligns with a similar pattern to what FTM experienced earlier. At the time of writing, Fantom price was trading at $0.7453 after encountering a consolidation phase between $0.61 and $0.71 on the daily chart.

On the other hand, the DOT price is $4.43, demonstrating a 4.17% increase in the past 24 hours. The trading volume also rose over 16% to $153.8 million.

Polkadot Price Projections

Amid the ongoing crypto market rally, other analysts have forecasted a bullish outlook for Polkadot. Crypto analyst RektFencer believes DOT’s price could rise by 850%. The analyst based his prediction on bullish technical indicators and high trading volume.

At the time of the analyst’s forecast, DOT traded at $6.361, with a 60.87% surge in 24-hours. The Moving Average Convergence/Divergence (MACD) indicator also showed a bullish cross beneath the zero line, highlighting buyers’ strength.

The Relative Strength Indicator (RSI) further highlighted DOT’s bullish momentum. This indicator was found at 52, recovered from 30, and headed for 70, highlighting that DOT could extend its gains.

However, DOT may continue to see bearish movements until the token crosses the $7 mark. Above $7, the token can facilitate gains and start an upward trend.

Ecosystem Activities to Boost the Trend

Polkadot enables different blockchains to exchange messages and perform transactions without needing a third party. This capability facilitates cross-chain transfers of data and assets, allowing for the development of decentralized applications (dApps) on the network.

In May, Polkadot introduced the Join-Accumulate Machine (JAM) technology, representing a prospective design to succeed the relay chain. In contrast to the current iterative approach, Polkadot presented JAM as a single, all-inclusive update. Additionally, JAM introduced a new computational model that is suited for the upcoming intensive tasks required in AI development.

In another development, Polkadot expanded its influence with a new sports sponsorship, further cementing its presence in diverse sectors. Polkadot recently became the official training partner for one of America’s most cherished football clubs, Inter Miami CF.

These ecosystem developments will increase Polkadot’s utility and might boost DOT’s future price movements.

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