Polkadot crypto price has remained in a narrow range this year, but its contrarian technicals and strong fundamentals point to an OKB-like short squeeze in the near term.
Summary
- Polkadot price could short-squeeze as it is in the accumulation phase of Wyckoff.
- The coin will also benefit from the upcoming changes in its tokenomics.
- It will also benefit from the upcoming Polkadot 2.0 and JAM upgrades.
Polkadot (DOT) token was trading at $4.40, inside the support and resistance levels at $3.95 and $5.30, where it has remained since February of last year.
Bullish catalysts for Polkadot crypto price
DOT price has several highly bullish catalysts that will propel it higher in the near term. The first key one is that the final stage of the Polkadot 2.0 update will be implemented in October.
In a note, Parity Technologies noted that elastic scaling was already live on the Polkadot Relay Chain and was only waiting for the Polkadot SDK 2509 to be updated. This will happen in early October.
Elastic scaling will enable dynamic and on-demand resource allocation for decentralized applications on the network. It is the third stage of the Polkadot 2.0 upgrade after asynchronous backing and agile coretime.
The other main catalyst for the DOT price will be the upcoming Join-Accumulate Machine (JAM) upgrade. This upgrade, which is seen as Polkadot 3.0, will transform the Relay Chain to enable running numerous applications.
Polkadot token will also rebound ahead of the implementation of the hard-pressure tokenomics mechanism in March. This transition will put a hard cap on DOT’s supply to 2.1 billion tokens and reduce the supply every two years. As such, this change could lead to a squeeze as OKB (OKB) did when OKX changed its tokenomics.
Furthermore, the Securities and Exchange Commission is likely to approve several DOT ETFs, which will likely lead to increased demand from investors.
DOT price technical analysis
The weekly chart shows that the Polkadot crypto price has remained in a three-year consolidation between $3.39 and $11.20. It has failed to move below this support even in the worst of crypto bear markets.
Polkadot is likely in the accumulation phase of the Wyckoff theory, mirroring the performance of OKB before the recent squeeze. In this case, a rebound may push it to the upper side of the channel at $11, which is about 150% above the current level.
