On-Chain Data and Analysis: What’s Next for DOT Price?

This week, many altcoins have given up their recent advances amidst escalating geopolitical tensions, with Polkadot (DOT) also encountering similar issues. The recent market correction has driven the altcoin’s price down to $4.04, marking a decline of over 14% in just three days.

In such times, it is crucial to pause and analyze some of the fundamentals along with trader sentiments, considering the conclusions of respected industry analysts.

Polkadot On-Chain

One key on-chain metric that tracks the network’s activity over time is the count of daily active users and new users entering the ecosystem.

Although the number of new accounts on Polkadot has remained fairly stable since May of last year, the active users figure has risen by more than 25%.

The volume of daily DOT transfers has also shown a notable increase during this timeframe, indicating that the network is handling larger amounts of transfers.

DOT’s Potential Breakout – Are Investors Prepared?

A recent analysis suggests that DOT is on the verge of a substantial breakout. The altcoin seems to be nearing the end of its accumulation period and may soon break free from a persistent falling wedge formation.

The findings indicate that recent trends in larger market caps imply that DOT is likely to follow suit, suggesting a significant upward movement may be just around the corner. The anticipated breakout targets, highlighting crucial resistance levels, are identified at $11.83, $18.41, $26.30, and $37.53.

“Having spent over 600 days below the critical zone, Polkadot is prepping for a powerful surge.”

Another market analyst, Lucky, also pointed out a similarly optimistic forecast for DOT in his recent technical analysis. He stated that the asset is approaching the conclusion of its annual accumulation phase, which could soon ignite a notable price increase for DOT.

A Shocking Prediction Based on Historical Patterns

A recent analysis by investment firm TradingShot suggests that DOT may be set for a significant price increase, potentially reaching $200 by late 2025. The analysis indicates that Polkadot is mirroring a pattern observed in Ethereum Classic’s (ETC) 2018-2021 cycle.

The weekly chart displays nearly identical RSI sequences for both assets. This includes lower highs and double tops leading into a bear market, followed by an RSI bottom that triggers a breakout above the weekly MA50 and the 0.5 Fibonacci retracement level.

Currently, Polkadot’s RSI is around 40.00, a crucial level that marked the beginning of a parabolic rise in Ethereum Classic. Should Polkadot replicate this cycle, it might surge towards the 1.5 Fibonacci extension, reaching $200 by the end of 2025.