Walletinvestor Extremely Bearish

According to the financial forecasting site walletinvestor.com, Polkadot DOT tokens may be headed to $0.28 within a year.

Walletinvestor started as a site that provided technical analysis of cryptocurrencies. It later branched out into analyzing stocks, real estate markets, and forex pairs. The company uses a machine learning algorithm to make price predictions. Their site claims an accuracy rate of 70.39%.

What does the Walletinvestor AI predict for Polkadot?

The technical analysis of Walletinvestor predicts nothing less than an unmitigated bloodbath for DOT.

Silver Lining

While this bearish forecast for DOT is extremely concerning (especially to DOT holders), there is some good news. By its own admission, Walletinvestor is wrong almost 30% of the time. There is also this gem of hope buried in the description of their machine learning:

“The accuracy of the prediction depends on the quantity and the quality of the data, so it is also difficult to anticipate anything in the case of newer cryptocurrencies.”

Polkadot was formed in 2016, and the first DOT tokens publicly issued in 2017. However, it is unclear how much of the crypto’s trading history is being analyzed by Walletinvestor. DOT was not publicly traded on large exchanges until Binance and Kraken listed the token on August 18, 2020. This means Walletinvestor’s predictive AI may be using slightly over a month of trading data to predict a year of prices. If this is the case, the insufficient amount of trading data will lead to predictions that are seriously flawed.

However, if the analysis is right, Polkadot may be in for a rough year.