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Veteran analyst Michaël van de Poppe believes Polkadot (DOT) has bottomed amid the latest market downtrend, projecting a price surge to $25.
Michaël van de Poppe made this commentary today during his latest analysis on Polkadot. In a post on X, the celebrated market veteran confirmed that Polkadot has been recording a massive correction since mid March, trailing the broader crypto market in the downtrend.
Polkadot Faces Correction
Market data confirms this disclosure, indicating that DOT soared from a low of $5.979 on Jan. 23 to a 22-month high of $11.889 on March 14. Interestingly, this marked the first time Polkadot traded above the $10 price territory since May 2022, when it collapsed below this level due to the Terra ecosystem collapse.
The spike from $5.979 to $11.889 earlier this year marked an impressive 98% increase, demonstrating DOT’s potential for substantial price surges. However, as Bitcoin (BTC) and the rest of the market faced a massive retracement, DOT got caught up in the bloodbath, eventually giving up its early gains.
Van de Poppe emphasized that, with Polkadot currently changing hands at the $6 price threshold, this correction has brought it to the levels it traded at before the impressive rally earlier this year. The last line of defense above this pre-rally level was the $8 territory, which gave in to bearish pressure early last month.
#Polkadot has seen a substantial correction in the past months, through which it came back to the pre-rally levels.
I think it has bottomed, especially since JAM Whitepaper came out.
Next rally will likely bring $DOT to $20-25. pic.twitter.com/azt0Qva2oz
— Michaël van de Poppe (@CryptoMichNL) May 16, 2024
DOT Has Bottomed
Remarkably, van de Poppe asserted that DOT might have reached its bottom price for the cycle amid the correction. According to the market analyst, the release of the JAM Graypaper further solidifies his belief that Polkadot might not trade any lower than its current price position.
Recall that Gavin Wood, the founder of Polkadot, released the JAM Graypaper earlier this month. The Join Accumulate Machine (JAM) introduces a new structure for the Polkadot network. The protocol looks to extend Polkadot’s chain capabilities beyond the crypto scene and bolster its scalability.
Immediately after the release of the JAM Graypaper, van de Poppe touted Polkadot as one of the promising layer-1 blockchains outside of Ethereum. According to him, the launch of the Graypaper effectively enabled Polkadot 2.0. This development is one of the most potent catalysts for a possible Polkadot surge.
Promising Layer 1 blockchains outside of $ETH?
I think I've got a few, and one is $DOT.@gavofyork wrote the Polkadot Whitepaper in 2016 and has now released the JAM Graypaper, essentially enabling Polkadot 2.0.
Strong bounce in the markets too, at a cycle low still. pic.twitter.com/h3mUOOHJes
— Michaël van de Poppe (@CryptoMichNL) May 1, 2024
A $25 Price Target
In his latest analysis, van de Poppe identified the $9.295 price as a crucial resistance level for Polkadot. The last time it saw this price point was on April 1 amid a price dump. Breaching this level could set the stage for a rally toward the $17, which represents another pivotal roadblock to break for a more substantial uptrend.
Van de Poppe predicts that this uptrend would help Polkadot achieve a price range between $20 and $25. While a $25 price would mark a massive 267% increase from DOT’s current price of $6.8, it still represents a 54.5% drop from the all-time high price of $55 attained in November 2021.