Popular crypto analyst Benjamin Cowen is figuring out some life like expectations for interoperable blockchain Polkadot (DOT) as 2022 comes into view.
In a new technique session, Cowen seems at Polkadot in its Ethereum pair (DOT/ETH) to gauge its power as an altcoin.
According to Cowen, DOT no less than goes up and down towards Ethereum as opposed to many altcoins which simply steadily bleed down.
“Of course, the thing we have to look at and keep a close eye on is, the DOT/ETH valuation. Now the key test of a good altcoin is that over the macro scale, at the very least, it’s an oscillator against Ethereum. If it cannot oscillate against Ethereum, then what’s the point? You’re taking on more risk for less reward. So there’s still hope here that DOT could in fact be an oscillator against ETH but it’s too early to say yet.”
The analyst says that whereas DOT’s price efficiency hasn’t been as memorable as maybe early 2021, the interoperability chain is in the end forming a bullish construction over the long run. Cowen says new all-time highs could possibly be realistically damaged in the primary or second quarter of subsequent 12 months.
“We know over the previous few months DOT has not carried out fairly in addition to a number of the different layer-1s that we’ve checked out. But I might nonetheless argue that over the macro scale, we usually are placing in increased lows. Really, this appears to be culminating with a sluggish uptrend up to across the $50 to $60 vary…
I imply, it could possibly be a whereas even when Bitcoin stays comparatively bullish, which I hope that it does. It might nonetheless be fairly a whereas earlier than DOT is in a position to get again up to these ranges. We could possibly be concentrating on Q1 or Q2 of 2022…
I hope that DOT stays in the uptrend and in the end we’ll see it escape to new all-time highs as we get additional into 2022.”
Disclaimer: Opinions expressed at The Daily Hodl aren’t funding recommendation. Investors ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital property. Please be suggested that your transfers and trades are at your individual danger, and any loses you could incur are your duty. The Daily Hodl doesn’t suggest the shopping for or promoting of any cryptocurrencies or digital property, neither is The Daily Hodl an funding advisor. Please observe that The Daily Hodl participates in online marketing.
Featured Image: Shutterstock/Cristina Conti