The price of Polkadot has been on a rollercoaster lately, and it’s not hard to see why. The DOT token reached an all-time high this week, reaching $29.63, about 14% above its lowest point last week. The market cap now sits at more than 29 billion dollars, making them the 9th largest cryptocurrency globally. This article presents our Polkadot price prediction for October.
What is Polkadot (DOT)?
The Polkadot network is a new, revolutionary blockchain protocol that will change how we interact with the internet. The idea behind it was to create an unbiased and decentralized system where users could have more control over their information.
Polkadot (DOT) Prediction Analysis
Polkadot, one of the more successful cryptocurrency projects in recent times, had a difficult month in September. The coin rose to $38 and then retreated down to $27.70 with trading at present levels around $29. However, unlike some other currencies, including Bitcoin and Chainlink, which saw their prices drop way low.
The dollar has been on a tear, rising to an all-time high in September. As the Federal Reserve starts hiking interest rates and plans to deliver seven hikes by 2024, it’s no wonder that Polkadot struggled with this.
What happens when the US dollar becomes stronger? It’s typically a bearish sign for other assets that are traded in USD like Polkadot and Bitcoin. Risky asset classes tend to sell off during periods of higher interest rates, as well. And this was certainly true with cryptocurrencies on Nasdaq 100 stocks or Dow Jones Industrial Index. September provided some rough days for investors.
Second, the Polkadot price went down due to regulatory issues. In September 2021, China announced that all cryptocurrency transactions were illegal and asked offshore companies to stop offering crypto services. Meanwhile, US regulators started looking at stablecoins like Tether or USDC.
Third, the decline in cryptocurrency prices was caused by fears that Evergrande could go bankrupt. Its highly indebted status made it vulnerable to any potential risks arising from its business activities.
Polkadot Price Prediction
Source: TradingView.com
After crashing to $10.22, the Polkadot price regained its overall bullish trend since July, when it reached that point at around 195% above its lowest level. And just below the 25-day and 50-day moving average encountered first before making any significant gains or moves upward on this occasion. Also, it is a few points below the all-time high of $48.95.
To summarize, the DOT price is likely to bounce back in October and will be watched closely for signs of staying above $48.95.