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Michael van de Poppe, a top analyst in the crypto space, predicts upward movement in the price of Polkadot’s native token, DOT. The analyst’s comments come amid a recent uptick in the broader crypto market.
Polkadot to follow Ethereum’s upward trend
While analyzing recent data from Tradingview, the analyst says Polkadot is set to show big moves soon, following in the footsteps of Ethereum’s upward trend.
This implies Polkadot’s potential to benefit from Ethereum’s growing ecosystem. Note that Polkadot and Ethereum are complimentary platforms and, as such, have common investors. Therefore, a change in the price of one could affect the other.
The analyst says Polkadot’s current valuation is extremely low when compared to that of Ethereum. Nonetheless, Van de Poppe believes the price of Polkadot has room for substantial growth.
$DOT is likely going to follow Ethereum in its expansion upwards.
— Michaël van de Poppe (@CryptoMichNL) June 28, 2024
This means that the current valuations of Polkadot are extremely low.
I expect a lot from the Polkadot ecosystem with all the new segments. pic.twitter.com/HjwCQhG2fR
He anticipates substantial development within the Polkadot ecosystem. Essentially, this could involve new projects, functionalities or even partnerships.
Surprisingly, Polkadot recently launched a key upgrade on its platform. The protocol, dubbed the most recent version "Asynchronous Backing," aims to optimize how the Relay Chain validates parachain blocks.
Comparing DOT’s parabolic movement to Ethereum
At press time, DOT is trading at $6.36, demonstrating a 4% increase in the past 24 hours. The trading volume increased by an amazing 28.7% to $233 million, with the market cap standing at $9 billion.
From a technical perspective, DOT is printing a strong bullish reversal with this Awesome Oscillator (AO) divergence on the daily time frame. Accordingly, some analysts claim a revisit of the $7.8 resistance level seems likely for DOT.
Meanwhile, the price of Ethereum rose to over $3,400 on Thursday, recovering from a short-term volatility in the crypto market. A market analyst claims Ethereum’s recent movement is consistent with historical patterns and forecast a price target of about $7,500 for the altcoin.