The Polkadot price has crashed over the past few months, dropping from a high of $11.7 in November to $4 today. It also remains much lower than its all-time high of $52. Still, one analyst has made the case why the DOT token will rebound in the coming months.
Analyst Makes the Case for Polkadot Price
Daniel Cukier, a top analyst and developer, has made the case for why the Polkadot price is on the cusp of a strong rebound.
He noted that the recent DOT crash was structural in nature. He argues that the coin plunged because, historically, Polkadot has used the parachain auction approach, which initially created substantial demand. This demand arose because teams had to purchase and lock DOT tokens for a period of two years.
The slots then started to expire recently, and many teams began selling, likely because their projects had not worked out well. This led to a higher supply and a lower DOT price.
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His argument is that the Polkadot price will now rebound because the developers have replaced the parachain auctions with Agile Coretime as part of the Polkadot 2.0 upgrade.
Agile Coretime has no long-term lockups and upfront DOT requirements. Instead, it has a just-in-time block space, utilizing the pay-as-you-go model. This approach, therefore, turns DOT into a blockspace currency, where projects hold and spend it.
He believes that the approach will create more demand as teams continue building using the technology. That’s because blockspace is finite, JAM has made it easier and cheaper to build applications, and DOT is now being burned.
At the same time, the developers are now working on the elastic scaling part of Polkadot 2.0, which will make it one of the fastest blockchains in the cryptocurrency industry. The update has already moved to Kusama for testing and will be unveiled soon on Polkadot.
Polkadot Price Technical Analysis
The weekly chart indicates that the DOT price has formed a giant triple bottom pattern at $3.60. This is a popular reversal pattern that often leads to a strong bullish breakout. It usually signals that bears are uncomfortable shorting the asset below the triple-bottom section.
Therefore, it is likely that the Polkadot price will bounce back, possibly retesting the neckline at $11.77, which is approximately 192% above the current level. A drop below the support at $3.6 will invalidate the bullish outlook.
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