The Polkadot (DOT) price has been attempting to claw back some ground this week after its recent 45% decline.
The network, similar to Ethereum, provides developers with a platform to create their own Blockchains. These ‘Parachains’ sit on top of the Polkadot Main network, or ‘Relay chain’.
The growing popularity of the Polkadot network had seen the Polkadot price increase 1000% in 2021 to its all-time high of $48.30 by the 17th of April 2021.
Just one week after setting an ATH, the price had collapsed 45% to $26.60, as fear and liquidation gripped the cryptocurrency eco-system. As stability returned to digital assets, the Polkadot price has managed to claw back some losses. Over the last week, the Polkadot price has rallied 26.30%, with the token last trading at $35.54.
This latest valuation gives the coin a ranking of #8 on CoinMarketCap’s crypto leaderboard, with a market capitalization just north of $31 Billion.
Polkadot Price Prediction
Using the four-hour price chart, we notice that from February of 2021, the trading band has continued to widen, with higher-highs and lower-lows.
This megaphone pattern tells us that price volatility has increased over the last 10 weeks. The recent sell-off to $26.60 coincided with the lower end of this channel, which links the lows of 28th of Feb, 24th of March, and 23rd of April.
The current Polkadot price sits between the 50 and 100-period Moving Averages at 32.70 and 36.43 respectively. A descending trend line, in place from the 19th of April highs, offers some resistance, at $34.65.
The price is currently consolidating and will need to break above the ascending line, and the 100 period MA at $36.43 to signal another run to the highs is possible.
A failure to hold the 50 period MA on a closing basis would suggest the price may re-visit the lower end of the megaphone pattern, now at $25.90.