Polkadot (DOT) Price Prediction and Analysis in May 2021
Polkadot (DOT) is the 8th largest cryptocurrency according to its market cap of $29,951,225,228. It has a circulating supply of 931,246,893 DOT out of the total supply of 1,066,771,007 DOT. About $3,242,377,951 worth of DOT have been traded in the last 24 hours. In this Polkadot price prediction, we will delve into all the important aspects to consider by an investor, such as past price trends, recent developments, market opinions, and more.
Polkadot Price Prediction: Analysis
DOT has made a lot of progress in terms of its price in the first quarter of 2021. It rose from just over $9 at the beginning of the year to reach a high of $46 on 3rd April. This sharp rise reflects the general market surge recorded this year and could also be as a result of the growing demand for Polkadot’s DeFi project.
The price has dipped and now seems to be in consolidation, with a small price range. Buyers and sellers have been in a battle, thus holding the price within the range. The Moving Averages of 20, 50, and 100 suggest that the price is still doing fine, but if the consolidation lingers or leads to a lower drop, the trend could reverse to the bearish.
The Relative Strength Index (RSI) has dropped significantly to 44.77. While this is not necessarily oversold yet, a rebound could occur soon, or the price could still dip lower.
Already, the 50 MA has failed to serve as support, and the price has dropped below it. However, there is no clear trend reversal confirmed by a death cross yet, so things may change eventually. The following are major support and resistance levels that you should watch if you are trading DOT. The values are calculated by Walletinvestor:
- Resistance Level (R3): 51.785;
- Resistance Level (R2): 47.415;
- Resistance Level (R1): 42.381;
- Pivot Point: 38.011;
- Support Level (S1): 32.977;
- Support Level (S2): 28.607;
- Support Level (S3): 23.574.
Polkadot Network is growing in different ways and adopting new use cases as well. Earlier this month, it was reported that Tether’s stablecoin – USDT is set to get on the Polkadot and Kusama network. The launch of USDT on the network will happen as soon as the first parachain is launched, Tether CTO Paolo Ardoino said. The stablecoin will first launch on Kusama, which is used to launch new projects before finally launching on Polkadot.
Meanwhile, America’s top crypto exchange Coinbase has declared support for Acala, a layer-one blockchain designed to bring full-service DeFi to the Polkadot ecosystem. The exchange through its investment arm, Coinbase Ventures will support the Ethereum compatible blockchain that has already built four core products on Polkadot with an undisclosed investment amount.
The products include Liquid DOT staking, a stablecoin, an automated market maker decentralized exchange, and a sovereign wealth fund. These are expected to greatly increase participation in the Polkadot ecosystem, with various functionalities being introduced.
Polkadot (DOT) Price Prediction: Market Opinions
The price of DOT has done well so far, but you may wish to know what will happen in May. The following are opinions of some top crypto price prediction sites, which should give you an idea of what to expect.
The Polkadot price prediction for May, according to Digitalcoinprice, is that it will reach an average of $59.3, which means an increase of 61.77%. The predicted price for May is the second-highest monthly price for the year.
Longforecast is rather bearish on DOT in May. Their Polkadot price prediction is that the asset will open the month at $34.27, much lower than the current price. The highest price is expected to be $50.11, while the lowest is $29.92. The closing price for the month is $31.4.
Tradingbeasts predicts that Polkadot will be priced at $32,785 in early May. The maximum price for the month is $42.269, while the lowest price is $28.743. The closing price for the month is expected to be $33.815.
Previsionibitcoin is extremely bullish on Polkadot. The Polkadot price prediction is that it will reach $119.99 in May. The reason is that the increase in the usage of the Polkadot network will drive the market cap up and thus the price.
Polkadot Price Prediction: Verdict
The price of Polkadot has done well, but what is its performance likely to be in May? This Polkadot price prediction reveals that there may be some uncertainty. In the short-term, the price looks fine with the hope of a reversal to the up side. However, if the downward trend continues, things may get more bearish, which could significantly affect the price. May is still roughly a week away, so it is better to stand back and watch carefully before jumping on board.