Prior to September 2020, Polkadot had been resting on its laurels, but since November, it has experienced a meteoric price surge that has forced us to make a Polkadot price prediction 2021. The altcoin is trading at $22.61, at the time of writing, and has a market capitalization of $21,541,429,634, with a circulating supply of 952,166,689.69 DOT.
Polkadot Price Prediction: Technical Analysis
For a coin that has faced turmoil since its IPO in 2017, Polkadots’s silver lining happened after its redomination in late August. Before the August 21 redomination, the altcoin was trading at around $2.76, as shown in the graph below.
Subsequently, the coin started to rise steadily, peaking at around $6.68 on September 1. That was a whopping increase of 142% within less than two weeks.
To understand our Polkadot price prediction, let’s define a redomination in lay terms. Redomination is akin to a share split. Essentially, it increases the circulating supply of a currency. This is exactly what happened after Polkadot was redominated at a ratio of 1:100. What is the effect?
With a lower price, units of DOT become cheaper, and people are looking to purchase them. That is why, despite being below the top 200 cryptos before the exercise, DOT suddenly rose to position six by September 1.
Apart from redomination, which occurred much later, Polkadot received a boost in May 2020 after Web3 Foundation launched its protocol to allow decentralized blockchain networks to operate together. So, from its inception, the protocol hadn’t been live for use.
In addition, in August 2020, the listing of DOT on big exchanges gave the coin the credibility it required among investors. Notably, Binance, Bitfinex, and Kraken listed DOT on August 18, and this was an act of confidence on the coin.
In an attempt to make a Polkadot price prediction, we must look at how it has been performing thus far. Polkadot started the year on a bullish streak at a price of around $9.14. It maintained a bullish rally with minor price corrections until the price fell to approximately $7.8 on January 11. However, DOT picked again to hit its highest mark of the month on the 25th date at $18.68.
For the entire month, DOT maintained a bullish rally, hitting a high of around $41.13 on February 20, making it the fifth leading cryptocurrency by market cap at the time. However, the buyers failed to sustain a bullish momentum, causing the price to nosedive immediately.
March was characterized by price consolidation, but the breakout took place on April 02 to reach $46.7 on April 03. The coin then retreated to the $40 range until it hit its highest point of $46.87 on April 17. This momentum halted, causing the price to collapse to lows of $29.49 after fear caused a massive sell-off.
Subsequently, the coin hit its ATH of $49.3 on May 15, but it later nosedived to the current $25.40, which is almost half of the ATH.
Polkadot Price Prediction: Market Opinions
In making our Polkadot price prediction 2021, we will keenly evaluate the perspectives of credible cryptocurrency predictors. We will also use fundamental analysis to bolster our opinion on DOT price for the remaining part of the month and the year, respectively.
Price Prediction Sites
TradingBeasts believes that by the end of June, the price will be around $26, entering the following month at $26.336. The forecasting site anticipates that the price of Polkadot will close the month of December at $23.053, with the maximum and minimum prices being $22.867 and $15.550, respectively.
MonthMinimum PriceMaximum PriceAverage PriceChangeJuly 2021 18.374 27.021 21.6164.13 %August 2021 18.364 27.007 21.6054.07 %September 2021 18.145 26.683 21.3472.83 %October 2021 17.680 26.001 20.8010.20 %November 2021 16.851 24.781 19.825-4.50 %December 2021 15.550 22.867 18.294-11.88 %
The short-term price prediction for Walletinvestor reveals that the altcoin will be on a downward spiral for the better part of June, hitting lows of around $15 by mid-month.
However, the long-term projection shows that DOT will remain bullish in 2021. Touching the $40 mark in October, and eventually hitting the resistance level of $50 in early 2022.
Gov.capital is very bullish in its 2021 outlook. They predict that DOT will close the year at highs of around $71. In their short-term outlook, they forecast that the crypto will enter July at $43.638, meaning they will close June at around the price.
The prediction site believes that DOT will open June at $23.03 and close at $21.58, with highs of $39.17 and lows of $20.07. For the rest of the year, the website has a bearish outlook, indicating that the crypto will close at $22.63.
Digitalcoinprice has a positive outlook for DOT, forecasting that the coin will retail at an average price of $31.63 in June. However, for 2021, the average price of the coin will be $33.46.
MonthAverage Price ($)Change (%)Jun 2021$31.63 USD45.08 %Jul 2021$32.26 USD48.01 %Aug 2021$36.25 USD66.31 %Sep 2021$32.64 USD49.74 %Oct 2021$30.67 USD40.69 %Nov 2021$31.39 USD44 %Dec 2021$29.58 USD35.68 %
Cryptocurrency Experts and Influencers
To make a balanced Polkadot price prediction, we have to carry out a sentiment analysis on what experts have to say about the coin.
In August, last year, Asian Cryptocurrency fund Spartan Black, through a partner, predicted that DOT would join the list of top three cryptocurrencies on CoinMarketCap and Coingecko. Almost one year down the line, we have witnessed DOT slip position eight from position seven. However, it had clinched position five in February, before altcoins, such as DOGE, began reaping from influencer sentient, while others like BNB have benefited from their business moves this year.
To buttress the prediction, Spartan Black further tweeted that Cardano wouldn’t outsmart Polkadot in terms of multi-chain connectivity. So far, Polkadot is ahead of Cardano in the development curve of its network. Therefore, if all goes to plan, Polkadot may soon topple Cardano.
Also, a cryptocurrency enthusiast and Polkadot influencer going by the name Guy provides a synopsis of the most awaited Polkadot projects. He is very categorical that although Polkadot and Cardano are involved in a battle for control of smart contacts, the former has a headstart. Moreover, he looks implicitly optimistic about Polkadot’s progress and future.
Latest News and Happenings Concerning Polkadot
The Stake reward for Polkadot is averagely 64%, compared to a paltry 7.27% offered by Cardano. This means that more people are likely to go for Polkadot because it promises a high return per year.
That said, let us carry out a fundamental analysis with emphasis on the latest developments to help us make our Polkadot price prediction. Lately, cryptosphere has experienced a surge in the demand for altcoins among both institutional and retail investors. Institutional investors prefer altcoin to diversify their fund portfolios, while retail investors prefer the coins because they can own entire units.
In February, Dubai-based crypto investment fund, FD7 Ventures announced that it was offloading its $750 million worth of their Bitcoin to invest in DOT and ADA. The aim was to diversify investors’ pool of funds.
In April this year, Osprey Funds launched a Polkadot fund to enable their clientele to benefit from exposure from the altcoin. Subsequently, Valkyrie Digital Assets also launched a Polkadot fund that benefits investors with the capital gain of the asset plus an 8% yield from staking at an exchange.
Tellingly, the increased interest in DOT among fund managers proves that institutional investors are bullish on Polkadot.
According to Polkadot’s white paper, the launch of Parachains will mark the final phase of establishing the core functionality of the protocol. Already, the Genesis block of its Relay chain was launched in May 2020. Now, the final part of making the protocol permissionless and decentralized is soon coming. This will definitely give Polkadot the acceptance it needs from the developer community.
Polkadot Price Prediction: Verdict
Polkadot intends to use its multichain architecture to create an interoperable ecosystem that facilitates collaboration between different dApps and blockchains. With Ethereum failing in scalability and the cost of gas, Polkadot promises to make up for the shortfall of the “king of smart contracts.” As a protocol with several use cases, developers are eager to adopt the network for further their projects.
Specifically, since the protocol is integral in supporting the robust Defi sector, we intend to see more developers adopting it. Therefore, if Polkadot can sustain adoption, it will be the coin to watch in 2021 and beyond. However, we hope that our Polkadot price prediction was very informative for you.
Featured image: exchangerates.org.uk
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