The cryptocurrency market is witnessing quite a surge. Altcoins, in particular, are experiencing massive gains. Polkadot (DOT) has dipped 0.9% correction in the daily charts but is in the green in the other time frames. The asset has rallied 25.2% in weekly charts, 76% in the 14-day charts, 164.8% over the previous month, and 78% since December 2023.
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Why Are Altcoins Rallying?
With Bitcoin (BTC) stagnating at the $96,000 level, investors could be moving their funds to other assets. Market participants may be trying to make gains with other cryptocurrencies, such as DOT, Cardano (ADA), Ripple’s XRP, etc.
The altcoin surge also comes amid WisdomTree’s recent S1 filing for a spot XRP ETF (Exchange Traded Fund). GrayScale has also filed for a spot Solana ETF. This development may have led investors to hope for more altcoin-based ETF products.
Polkadot (DOT) and other altcoins’ rallies could be due to Donald Trump’s victory in the US Presidential race. Trump’s pro-crypto stance could have led to high investor sentiment.
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Polkadot To Hit $22
According to prominent cryptocurrency analyst Ali Martinez, DOT could retrace to $7.5 before hitting $22. Sliding to $7.5 from current price levels will translate to a dip of about 25.45%. On the other hand, hitting $22 from current prices will entail a rally of about 118.69%.
CoinCodex also paints a bullish picture for DOT over the next few months. The platform anticipates the asset to breach the $22 mark on Jan. 17, 2025. CoinCodex predicts DOT to continue its rally and hit $36.90 on Jan. 30, 2025. Hitting $36.90 from current price levels will entail a rally of about 266.8%.
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Polkadot (DOT) is currently down by 81.7% from its all-time high of $54.98. The asset hit its peak in November 2021. If the market continues its upward momentum, DOT could reclaim its all-time high soon. Trump’s administration may be lenient on the crypto industry. The easy regulations could set the tone for crypto assets to hit new highs over the next few months.
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