Crypto analyst Sheldon The Sniper shared his analysis of Polkadot (DOT), explaining why he thinks the price of the crypto is going up following a key breakout.
Breakout of the Trend Line
Sheldon noted that Polkadot's price had been going down and bouncing off a descending trend line, which has been a resistance since March. The price broke out of this trend line pattern six days ago and is now undergoing a retest.
Potential Growth Targets
The analyst suggests that the new support is expected to hold the price, which could trigger a spike to $8, representing a 100% increase from the current price of $4. A breakthrough at $8 could see further growth to $10, requiring an increase in Polkadot's market cap to $18 billion.
Historical Data
The last time Polkadot hit $10 was in March during the previous bull rally that started in October and ended in March. During this period, Polkadot's price rose by around 200%. Thus, reaching $10 seems feasible if the retest of the broken trend line is successful.
While a rise to $10 is possible for Polkadot, it may require a general bullish move in the wider crypto market. With continued upgrades and forward-looking partnerships, $10 doesn't seem like an unattainable target for DOT.
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