- Polkadot price is currently contained inside an ascending parallel channel.
- The Polkadot ecosystem has seen significant growth in the past month.
- The protocol is still in its infancy and has a lot of potential to grow more.
Polkadot has been one of the fastest rising cryptocurrency projects in the past year, reaching a market capitalization of $15 billion, ranked fourth. The Polkadot ecosystem includes significant projects like Ocean Protocol, Ankr or WalletConnect.
Polkadot price needs to defend a crucial support level to rebound
According to statistics from Coin98 analytics, over $10 worth of Polkadot coins are staked inside exchanges or wallets. In addition to the substantial number of coins locked, the Polkadot ecosystem has received a lot of interest from big players in the recent months including Binance, Huobi, and others.
DOT has established an ascending parallel channel on the 4-hour chart and bulls are just defending the lower support trendline at $15. Successfully holding this level can quickly push Polkadot price towards the middle of the pattern at $17.15.
DOT/USD 4-hour chart
To give credence to this bullish outlook, the TD Sequential indicator has just presented two buy signals on the 2-hour and 3-hour charts.
DOT buy signals
However, it is still entirely possible for the bears to push Polkadot price through the support level at $15. This breakdown can lead to a 20% move to the downside with a price target of around $12.
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