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Four reasons why the Polkadot price will double by the end of October

  • Polkadot price faces a massive spike as two technicals suggest a bullish outlook.
  • The recent swing lows combined with the RSI show the formation of a hidden bullish divergence and give tailwind to the bullish scenario.
  • The introduction of DOT by FCA registered digital asset custodian Digivault underscores the positive outlook.

The Polkadot price has been stuck in a consolidation phase for about a month. However, this trend could be coming to an end for three main reasons. As a result, investors can expect DOT to launch a massive bull rally in the coming month.

Technical data suggests an inevitable uptrend for DOT. there

Polkadot price made its first swing low at $ 25.21 on September 8th and rebounded approximately 53% to hit a swing high at $ 38.76, that of the 70.5% Fibonacci -Retracement level coincided.

With buyers unable to maintain bullish momentum, DOT pulled back to create the second low at $ 25.21 around the same level as the first. The resulting rise resulted in a lower high at $ 33.61 and corrected to form the third swing low slightly higher than the previous two at $ 26.13.

These three swing lows are called a triple bottom pattern or a triple tap setup. This technical formation is similar to the double bottom reversal pattern, which often marks the end of a downtrend and initiates a new uptrend.

The second major reason for this optimism is the green buy signal “one” shown by the Momentum Reversal Indicator (MRI) on the 12-hour chart.

This technical formation predicts that the bottom has been reached and that a candlestick rise of one to four is likely.

As such, market participants can expect the Polkadot price to rise above the recent swing high at $ 33.61 and run to the 70.5% Fibonacci retracement level at $ 38.30.

If the bid orders continue to pile up and cause the Polkadot price to produce a crucial 12 hour candlestick close above the 79% Fibonacci retracement level at $ 41.68, it will indicate the continuation of the uptrend .

In this bullish situation, the DOT could rise to the range high at $ 50.04, a 100% gain.

DOT / USDT 12 hour chart

While the MRI and triple-tap setup play a central role in predicting a bullish outlook, the hidden bullish divergence seals the deal.

Polkadot price made higher lows from August 26th to September 28th, suggesting a possible bullish trend. At the same time, however, the Relative Strength Index (RSI) made lower lows.

This fork between the price and the RSI is known as the hidden bullish divergence. The result of such a technical formation often leads to an upward trend. In the case of DOT, it reinforces the already bullish narrative that the price is poised for a bull rally.

DOT / USDT 12 hour chart

DOT / USDT 12 hour chart

Fundamentals support the bullish thesis

The final and foremost reason that optimism will find its way to push the Polkadot price up is the milestone reached when a Financial Conduct Authority (FCA) -approved cryptocurrency custodian, Digivault, announced it was DOT is kept.

Digivault is the first independent cryptocurrency custodian to receive a Go mark from the FCA. With this custodian receiving massive interest from retail investors and institutions, recent developments will encourage users to buy and hold DOT. In addition to Polkadot, the company offers custody services for Bitcoin, Ethereum, USDC, ERC-20 and ERC-1400 products.

Digivault CEO Rob Cooper added:

While the advanced nature of Polkadot makes custody integration more complex than other blockchains, we felt it was important to give people the ability to hold such a unique asset within a regulated custodian.

He also stated that their move to acquire a license to hold polkadot custody was also a factor of customer interest, adding further tailwind to DOT’s optimistic thesis.

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