The concept of selling in May and going away is not working out as expected, as most assets have surged this month. Bitcoin price has soared to $104,000, while the crypto market cap has soared to over $3.3 trillion.
The stock market has also continued soaring this year, with the Dow Jones, Nasdaq 100, and S&P 500 indices continuing to rise this month as hopes of a trade deal between the US and China continued.
This article explains why one should avoid selling in May and going away, and instead buy Polkadot (DOT) and wait.
Polkadot price has numerous catalysts
The DOT price has done well in the past few days, and its numerous catalysts point to more gains in the coming months.
The first important catalyst is that 21Shares and Grayscale Investments have applied for a spot Polkadot Exchange Traded Fund (ETF) with the Securities and Exchange Commission (SEC), and analysts believe that the agency will approve them. That’s because Polkadot is similar to Ethereum in that they are both proof-of-stake networks.
A spot Polkadot ETF would help the coin attract more assets from institutional investors seeking a good alternative asset. For example, these investors have allocated over $40 billion in assets to Bitcoin since January last year.
Second, Polkadot price will benefit from the ongoing Polkadot 2.0 upgrade that promises to make it the best layer-1 network in the crypto industry.
Polkadot 2.0 is made up of three key parts, including asynchronous backing, agile coretime, and elastic scaling.
Async backing, which was introduced in 2024, optimized the parachain protocol by allowing parachains blocks to be built on older relay chain blocks, rather than by allowing synchronization with the latest relay chain. It also reduced the block time from 12 to 6 seconds.
The other part of of the Polkadot 2.0 upgrade was the agile coretime, which enabled developers to skip the parachain auction process. In it, developers can just purchase computational resources or coretime based on their projects needs.
The two sections have already been implemented, with the developers now working on elastic scaling, which allows projects to add multiple cores to a task, shortening the block production time s and allocate cores on-demand to handle increased throughput.
The elastic scaling upgrade has now been launched on Kusama ahead of the final move to the Polkadot mainnet. Its upgrade will likely lead to more demand for the DOT token.
Polkadot price will also benefit from the expected Bitcoin price surge. Analysts believe that Bitcoin will eventually rise to over $200,000 in the long term as demand rises and supply in exchanges falls.
Read more: Polkadot price predictions: 4 reasons DOT token may surge soon
Polkadot price technical analysis
DOT price chart | Source: TradingView
The daily chart shows that the DOT price has rallied after bottoming at $3.25 in April this year. It has rebounded to the current $5.3, its highest level since February 2nd.
Polkadot price has moved above the 50-day moving average and the key resistance at $4.765, the highest swing on March 3rd.
The most bullish catalyst for the Polkadot price is that it formed a triple bottom chart pattern at $3.58. This pattern is one of the most bullish signs in the market.
Therefore, the coin will keep rising as bulls target the key resistance level at $11.60, where it has failed to move above two times before. It retreated after rising to that level in March and November last year.
A move to that level will point to a 120% above the current level. A drop below the support at $4 will invalidate the bullish outlook.
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