Polkadot – Positioned For A Monster Rally

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8 Oct 2024

The WEB3 Leader
It is important to remember that price is not necessarily indicative of true value. This is seen in the ideology of value investing. Value investing identifies projects where the associated value of the project or share does not correlate with the intrinsic value and real-world application. In other words, a bargain due to the mispricing of the asset for whatever reason.
A deep dive into Polkadot and its infrastructural architecture reveals a complex ecosystem simultaneously simplified through interoperability and parachain design. Furthermore, high-quality block space has recently become less expensive. Polkadot is designing the future of WEB3, which is rather apt considering Gavin Wood coined the term “WEB3” in 2014 shortly after co-founding Ethereum.
It appears the market has mispriced DOT. Another bullish factor regarding price is the decrease of inflation from 10% to 8% with ongoing reductions over time. Turning to the charts DOT appears primed for a significant breakout. The weekly chart reveals a falling wedge pattern very close to breaking out. A falling wedge is a classic bullish pattern with a high success rate.

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A similar formation was seen in HIVE a few weeks ago which triggered a 30% pump almost immediately after breaking out. In both cases, a 30% pump is just the beginning. Both assets point to a continuation of bullish price action. However, a breakout is often retested and should be interpreted as a healthy sign rather than a weakness. Furthermore, TradingShot on X has pointed out the similarities between DOT, and ETC in its formative price action.

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The charts above display eerily similar price action patterns between ETC and DOT and reveal how DOT could soon explode into a parabolic move to the upside. A breakout from the falling wedge would indicate the formative stages of a significant move for DOT. A retest of the previous resistance will flip it into a new level of support. All eyes are on DOT, as a breakout could trigger an almost immediate surge.

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Final Thoughts
Polkadot (DOT) enjoyed an enormous move earlier in the year when it rallied from similar levels to almost $12! A repeat rally is on the cards which could eventually see DOT printing new all-time highs. Stakers who acquire coins at the $4 mark are likely to be rewarded in the not-so-distant future. Keep yours fixed on DOT, a monster move is on the way! All the best, see you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.