After a tough period in the bear market, in which Polkadot (DOT) was hit hard, the digital currency is showing signs of recovery again. With an impressive price increase of 165% in the past month, Polkadot is trading at $10.95 at the time of writing. What can we expect in the near future? Renowned crypto analyst Ali Martinez shares his insights.
Analyst expects further increases
According to Ali Martinez, Polkadot’s potential has not yet been exhausted. While the path to the upside may be bumpy, the analyst expects a temporary pullback to $7.50 before a further rise to $22 is possible. If this forecast comes true, it would mean an increase of 120% from current levels.
The recent rally has also led to a golden crossover between the 100-day and 200-day exponential moving averages (EMA). This technical indicator, where a short-term average crosses a long-term average, is generally considered a strong bullish signal. Additionally, Martinez emphasizes that holding critical support levels is essential to maintain positive momentum.
Polkadot vs Ethereum
Polkadot is often compared to Ethereum (ETH), and for good reason. The project was founded by former Ethereum co-founder Gavin Wood. Yet the two platforms are essentially not direct competitors, but rather complementary to each other.
Polkadot is designed to connect blockchains together through its unique relay chain and parachain architecture. Ethereum, on the other hand, focuses on decentralized applications (dApps) and smart contracts. This interoperability allows Ethereum to further expand its ecosystem, while Polkadot strengthens its role as a connecting link between blockchains.
Conclusion
With the recent price increase and positive technical signals, Polkadot is back in the spotlight. While there may be bumps along the way to higher levels, current developments point to an optimistic outlook. Polkadot’s unique position as a unifying force in the blockchain world underlines its potential, both for investors and for the further development of the crypto ecosystem.
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Source: https://newsbit.nl/polkadot-boven-10-wat-betekent-dit-voor-de-koers/
