Popular crypto trader and analyst Benjamin Cowen sees a bright future on the horizon for Polkadot (DOT).
Polkadot is an interoperable blockchain platform. Its native asset, DOT, is trading at $36.29 at time of writing and is up 31.8% on the week, according to CoinGecko.
Cowen tells his 538,000 subscribers that Polkadot might not be undervalued compared to Bitcoin (BTC), but it does seem to be undervalued relative to other altcoins.
He points to what the project is currently developing, particularly parachains. Parachains are custom blockchains that can be customized to perform various use cases, and they are on track to be released sometime this year, according to Polkadot.
Cowen says it “seems reasonable” that DOT could rally 120% in value.
“If you look at the DOT/ETH valuation, it actually still would have a ways to go to get back to the prior all-time high… another 126% move. So for a constant valuation of Ethereum, a 126% move would take DOT up to $80-85 or so.”
The analyst notes that DOT’s short-term future, however, is highly dependent on Bitcoin’s price action.
“I would say that DOT should have a fairly bright future ahead when we’re thinking about the next one to two years. But of course in the short term, it’s always dependent on what Bitcoin does.
As long as Bitcoin holds the line above the 20-week moving average, then it seems like the path of least resistance for Polkadot would be to continue moving higher.”