DOT is one of the booming altcoins because of the potential of its underlying Polkadot network. Its technology allows blockchains to communicate with each other to create one decentralised system that works in harmony.
Polkadot has been making amazing gains in recent weeks, and the token is currently trading at around $21.51 at the time of writing. The price is a dip for the token in 24 hours after a rough weekend.
Polkadot Price Analysis
DOT has witnessed a sharp price correction ever since achieving an all-time high in May. As a result, some analysts believe that DOT comes in as highly undervalued when analysing other altcoins. Considering this, DOT may gain a steep bull in the coming weeks.
Looking at the price movement of this token, it is close to inching lower to the $20 support level. If this happens, it will set an ideal entry point for traders who want to buy in the dip and go long, hoping for a price increase. On the other hand, if an upward price movement happens, the token may pick $30 as its next target. $30 is DOT’s higher resistance level, while $20 is its lower resistance level.
DOT’s breakout towards the bullish zone is dependent on the launch of the network’s parachains this week. The development is expected to boost the demand and the prices of DOT and Kusama tokens.
With the auction starting on Thursday, developers will need to part with a minimum of 1 million DOT tokens to secure a slot on the parachains auction. This sum is expected to boost value.
Some companies have already started bidding for the auction, with Master Ventures investing a $30 million fund to invest in an auction slot. With the Polkadot network showing great promise, such as Ethereum when it was still young, DOT may retrace its steps to become one of the most dominant altcoins in the market.
The other factor that may boost the value of DOT is support from the entire crypto market and more so from bitcoin. Bitcoin’s value has been picking up this week, and it is almost breaking the $40,000 mark. If this happens, retail investors will rally yet again to buy cryptocurrencies and push for another bull trend such as the one witnessed in April and early May.
Where to buy DOT
As stated earlier, polkadot is slated for a massive demand because of the parachains auction on June 15. This makes the altcoin a very good buy for investors who want to buy for the short and long terms. To buy DOT, you need to check on the eToro exchange.
eToro is a dependable cryptocurrency exchange that is highly reputable in trading digital assets. eToro not only has a competitive trading fee but also offers a copy-trading feature that will allow you to copy what experienced traders are doing and increase the chances of you making a profit.
To purchase DOT tokens, you can do so on the largest cryptocurrency exchange in the world, Binance. The exchange offers amazing features that will help a new trader to navigate through all the complex processes. Binance offers competitive trading fees.
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