Polkadot is a shared and open-source multichain protocol that allows people to perform cross-chain transfers of any data to make a bridge between blockchains. The primary aim of this blockchain is to provide a foundation to internet blockchains, Web3.
Polkadot uses the layer 1 blockchain network known as parallel chains that can update the codebase through the on-chain governance of token holders. As a result, the use of this network has become influential in creating new applications and services. Moreover, this protocol can connect public and private chains, oracles, and future technologies.
The native token of Polkadot is DOT, where the current supply is 987,579,314.96 DOT against the total supply of 1,103,303,471 DOT. Polkadot (DOT) price prediction today has become potent due to its massive volume change in the last 24 hours of 83.92% or $1,656,031,525.
So, Is Polkadot (DOT) a good investment?
Let’s see the Polkadot (DOT) price prediction from Polkadot Forecast:
Blockchain Interoperability In Polkadot
As per the Polkadot website, researchers and developers from some prominent companies are behind the project, where the primary aim is to provide Web3 realization. Moreover, the Polkadot development team said in a blog post that it was designed to realize interoperability and scalability on multichain futures.
The core strength of DOT price is that it is backed by a bridge that creates a compatible connection to transfer data between multiple blockchains. Therefore, investing in DOT now allows investors to remain at the top if the price surges in 2023.
Polkadot Parachain Auctions
In the latest Polkadot news, its founder announced that the network is ready to support parachains, which is the final stage of the multi-phase process as a part of launching the proof-of-authority version of the relay chain. This unique validity allows users to interact securely yet remain independently governed.
DOT price soared after the commercial launching of Polkadot, where the price action shows that the particular coin bottomed in July to $10.42 level before climbing to the $38.68 level on 14th September.
Polkadot (DOT) Price Action Analysis
In the DOT/USDT daily chart, the price showed an intense selling pressure after breaking below the 46.00 event level. In the most recent chart, the price is trending lower within a bearish channel, where a bullish breakout would indicate a buying point.
The above image shows how the price trades within the bearish channel where the MACD lines form a divergence. On the other hand, the current price is trending lower from the dynamic 20 EMA, indicating that short-term bears are active in the price.
Based on the daily price structure, DOT/USDT bulls should wait for a bullish rejection candle from an 18.80 support level with a daily candle above the dynamic 20 EMA. Moreover, any bullish channel breakout with strong support from volume would be an immediate buying opportunity in this pair. On the other hand, the extreme selling pressure below the 18.80 level needs a HODLing approach towards the 10.41 area.
DOT/USDT Ichimoku Cloud Analysis
According to the Ichimoku cloud on the H4 chart, the DOT/USDT is trading within a bearish momentum as the current price is below the Kumo Cloud. Moreover, in the future cloud, the Senkou Span A is below the Senkou Span B and aiming lower while the Chikou Span is below the price.
The above image shows how the RSI level stays below the 30 level, indicating an extreme selling pressure in the price. Moreover, the current price is below dynamic Tenkan Sen and Kijun Sen while the gap with the price has expanded.
In that case, investors should find the price above the 26.00 level with a bullish H4 close to going long with the target towards the 50.00 level. On the other hand, as the current price is trending lower, any bullish sign from 20.00 to 16.00 level has a higher possibility of taking the price up.
Is Polkadot (DOT) A Buy In 2023?
According to the Polkadot Price Prediction, the price is already trading at a discounted level that may show a decent return in 2023. Based on its potentiality from multichain factors, investors can consider it as a good investment opportunity for the coming days.