Polkadot forecast 2022: current & long-term course outlook

Zalim
October 7, 2021
Today's market forecast is devoted to the Altcoin Polkadot forecast. Like most other cryptocurrencies, DOT / USD has posted massive price gains in the past twelve months but has recently seen a sharp correction.
polkadot-forecast

The consolidation phase on the crypto market continues. For days, the prices of the most important cryptocurrencies have been moving sideways with low volatility and little trading volume. However, this could be an indication that an explosive breakout or another sharp correction in prices is imminent.

The experience of technical analysis shows that low trading volumes and long sideways movements almost always herald a massive price movement.

The Bollinger Bands, which are often used in chart analysis, have also recently moved towards each other. The convergence of the upper and lower bands towards the moving average indicates that price has moved more, and the direction cannot be predicted.

Whichever direction the prices break out in the end, rising price movements offer the ideal prerequisite for trading for traders on crypto exchanges.

But what about long-term investors who want to invest their money permanently in cryptocurrencies? Which asset is currently worthwhile? Today’s market forecast is devoted to the Altcoin Polkadot forecast. Like most other cryptocurrencies, DOT / USD has posted massive price gains in the past twelve months but has recently seen a sharp correction. So is it currently worth buying DOT / USD?

Table of Contents

What distinguishes polkadot?

polkadot-forecast

Polkadot is one of the more recent projects on the crypto market. This is how Ethereum co-founder Gavin Wood created the protocol. In 2017, he raised a total of almost $ 150 million in an ICO (Initial Coin Offering) for development and market establishment.

Another driving force behind the project is the Swiss Web3 Foundation, which has set itself the goal of developing and promoting new technologies and applications for decentralized web software protocols, especially with cryptography.

In practice, Polkadot should enable communication between different blockchains and create a kind of data line between these blockchains. This clearly distinguishes Polkadot from “standalone” blockchains such as Ethereum and Bitcoin, which are “only” based on a blockchain.

One use case is smart contracts (intelligent contracts), in which different users can automatically use a common set of contracts to implement a specific project. With the help of Polkadot, it is now possible to link these smart contracts to other blockchains and their users across individual blockchains.

Thanks to the multichain approach, Polkadot also promises to create a highly scalable network. For example, a transaction can be processed across multiple blockchains at the same time. The users of the Multichain should all be protected by a common security architecture. This has the advantage that no new security structures have to be created in a new chain.

DOT acts as the token of the network. It is given out as a reward to the participants in the network who do their part in the further development of the Multichain. However, if you act against the rules of the game, you can lose your tokens again. This is intended to improve the trustworthiness of the Multichain.

In the Multichain, blocks are not secured with computing power as in the Bitcoin network, but with the staking of the DOT token. Polkadot wants to act resource-saving and environmentally friendly and shows certain parallels to the Ethereum 2.0 approach.

What potential does DOT have?

Analysts generally estimate the market opportunities for Polkadot to be very good over the next few years. Due to its special technological infrastructure, the project has an absolutely unique selling point compared to other blockchains and real application scenarios.

In addition, smart and financially strong partners are behind the project. The British computer scientist Gavin Wood has already proven his visionary thinking during the development of Ethereum and is considered the brain of the Polkadot network. With the Swiss Web3 Foundation, the project also has financially strong partners behind it who are interested in the further long-term development of Polkadot.

One of the well-known projects is Kusama. This is an experimental version of Polkadot that is used to test and optimize scalability and interoperability functions before they are available on the Polkadot network.

Due to Polkadot’s innovative strength, many analysts are expecting the DOT / USD rate for the next few years to be very positive.

How will the DOT price develop in 2020/2021?

polkadot-forecast

  • Between September and December 2020, the DOT / USD rate moved sideways in a corridor around $ 4 for a long time, while the Bitcoin rate was already able to break out significantly upwards.
  • On December 28, the steep rise in the DOT / USD rate began with a daily gain of 28 percent to just under 6.7 dollars
  • At the beginning of January 2021, DOT / USD surpassed the $ 10 mark.
  • Within just two weeks, the value doubled to just under $ 20 by mid-January.
  • By mid-February 2020, the price had increased by a further 100 percent to more than $ 40
  • a phase of several ups and downs followed before DOT / USD finally hit a new all-time high of almost $ 50 on May 15th.
  • In a sharp correction, the rate fell to below $ 14 by May 24th.
  • DOT / USD is currently trading at just under $ 25 again. An increase of almost 80 percent compared to the low point.
  • The market capitalization is more than $ 22 billion. This puts DOT / USD in 8th place in the crypto ranking.
Which exchange rate for DOT / USD is possible in the future?

polkadot-forecast

Short term forecast

A look at the DOT / USD daily candles shows that the altcoin is currently forming an interesting price pattern. So DOT / USD is in an ascending triangle.

The ascending triangle is considered a bullish pattern according to the probabilities of the analysis. A break above the resistance line is more likely than a breakthrough the support line. The resistance is in the $ 26 range. On June 5, DOT / USD tried to break out in vain. Meanwhile, the rising support line has already been tested several times.

Should DOT / USD manage to rise above 26 dollars and confirm the breakout, the technical price target is around 29.50 dollars. A downward correction, however, could push the price back into the $ 21-22 area.

 

Long-term forecast

Wallet Investor’s long-term forecast for the DOT / USD rate is clearly bullish. The analysts expect that the altcoin has already hit it’s annual low and will see significant gains in the coming months and years. They believe prices of more than $ 80 are possible by 2022.

polkadot-forecast

The expectation of Digitalcoin Price is somewhat more cautious. Market watchers estimate that DOT / USD will not hit a new all-time high of more than $ 50 until 2023. By 2028, they think a rate of more than $ 100 is realistic.

Coin Price Forecast estimates that DOT / USD will break the $ 50 mark in 2022. Consolidation in the $ 70 to $ 80 price range is expected over the next few years

4.9
4.9/5

Our recommendation: Trading at Investby

Our recommendation: Trading at Investby

  • The broker provides an Islamic Account
  • It provides a dedicated account manager
  • Receive customised investment news
  • Trade with a variety of assets
  • There’s no deposit limit
ABinvesting Review
4.5
4.5/5

Our recommendation: Trading at ABInvesting

  • Acknowledge the financial markets through education material 
  • Free VPS is available 
  • Get a swap discount of 50 per cent 
  • Islamic Account is available to traders 
  • Select account types of your interest
4.9
4.9/5

Our recommendation: Trading at PrimeFin

  • Fifth decimal available 
  • Spreads begin from 0.03 pips
  • Commission is zero  
  • Full 10-hour support  
  • News alerts and VPS for traders

FAQs

Get a Callback

A trusted broker will contact you today.

Name(Required)