Polkadot price prediction: Altcoins are emerging as the biggest gainers following the greenlighting of 11 spot Bitcoin exchange-traded funds (ETFs). Ethereum started showing strength pre-ETF approval and has continued to guide altcoins on this northbound journey. Polkadot price is moving in tandem, after increasing by 22% to $8.45.
If bulls sit tight and avoid cashing out at the earliest sign of profit while increasing exposure to DOT, we could see the token pumping above $10 this week.
Read also: Bitcoin Price Prediction Post Spot ETF Approval, Is $60k Target Possible For BTC?
Polkadot Price Prediction: How To Remain Profitable With DOT
Bulls seem relieved following a rebound from support at $7 and the subsequent climbing above the 50-day Exponential Moving Average (EMA) (red), the 20-day EMA (blue), and most importantly, the break above the descending channel.
A daily candle close above the channel or the support at $8 is required to ascertain the sustainability of the uptrend.
Looking forward, a potential buy signal from the Moving Average Convergence Divergence (MACD) indicator would further seal the deal for speculators. Traders who need more assurance (confirmation of a confirmation) would be compelled to buy DOT with the blue MACD line crossing above the red signal line.
Polkadot price prediction chart | Tradingview
Some of the key levels to observe in DOT’s recovery journey include the area at $9, where the parachain token was rejected in December. The next key level to keep in mind is $10. Sustained price action above it would mean an improving technical structure and likely pave the way for gains targeting highs past $20.
Polkadot Staking Skyrocketing
Holders of the world’s 12th largest cryptocurrency are channeling most of their holdings to decentralized finance smart contracts for staking. So far, the ecosystem’s value locked is up 52.43%, according to Tony Bitcoin, a market analyst and trader.
Whales appear to be leading the trend, sending large amounts of the token to staking contracts. The spot Bitcoin ETF news has also positively impacted the staking trends.
#Polkadot #DOT continues to increase the amount of $DOT locked in #Staking is already at 52.43% 🔐🔐🔐🔐🔐🔥🔥🔥
Something big I think is going to happen in #Polkadot because the whales are putting large amounts of $DOT in #Staking in the last 48 hours and less than 24h before… https://t.co/iEJFDcHfn2 pic.twitter.com/pHI24MFErZ
— Tony ₿itcoin⚡ (@Toni_Bitcoin) January 9, 2024
The analyst believes there could be something brewing in Polkadot corridors. Ideally, most whales should be focused on Bitcoin and Ethereum but for an unknown reason, their attention has turned to DOT.
Whales have been known to move the market in their favor, whether up or down. Staking DOT massively points towards a bullish outlook. As the circulating supply dwindles, the token could rally significantly backed by increasing demand.
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