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Polkadot price is witnessing the bullish impact of the positive interest it has received from institutional investors. The altcoin seems to be heading towards a previously failed high.
However, it might face multiple resistances in its path, which could subdue the bullishness noted presently.
Polkadot Outperforms Solana and Cardano
Polkadot price recovered by 12% this week and part of the credit for this goes to institutions along with retail investors. Their interest in $DOT surged in the week ending March 23, so much so that they picked this altcoin over the likes of Solana and Cardano.
Polkadot recorded inflows worth $5 million, which, albeit not much, is still positive. On the other hand, SOL and ADA both observed outflows worth $5.6 million and $3.7 million, respectively. This shows that institutions opted for $DOT this week, which also gave the price a boost.
Similarly, retail investors are also exhibiting a comeback of the bullish sentiment following the recovery. This is crucial for Polkadot price as optimism would induce conviction which would keep the altcoin trending upwards.
$DOT Price Prediction: Will Investors See $12 Again?
The bullish cues suggest that Polkadot price is certainly on the path of recovery and will continue rising. Over the past few weeks, the altcoin could be seen forming a rounding bottom pattern. This bullish reversal pattern suggested a potential rally of 31%, placing the target price at $12.
While $DOT could not manage to fulfill this target during the previous bull run, it has a shot this time around, provided it can breach through the resistance levels marked at $10 and $11.
This local barrier might act as a hindrance to Polkadot’s rise, and if it fails to breach these resistances, it could fall back down to the $9.2 support floor. Losing this level would invalidate the bullish thesis, causing a decline to $8.