- DOT/USDT pair breaks and rejects off $5 resistance.
Rising open interest and volume increase, signals bullish sentiment.
As a seasoned crypto investor with over a decade of experience navigating the ever-evolving digital asset market, I can confidently say that Polkadot (DOT) presents an intriguing opportunity for potential gains. The recent price action shows a struggle at the critical $5 resistance level, but the overall bullish sentiment is evident in the rising open interest and volume.
On a 4-hour scale, Polkadot (DOT) surpassed the $5.0 mark, but its advance was swiftly halted, indicating that it’s encountering difficulty at this significant resistance point.
In simpler terms, the price range between $2.5 and $4 acts as a psychological barrier for both daily and weekly trading. At present, the DOT/USDT pair is moving upward within a channel that follows a parallel trendline pattern.
At the moment of reporting, Digital Coin (DOT) has increased by approximately 10.54% over the course of this week. The broader altcoin market continues to show a positive trend, although there’s been a rejection marked by a bearish engulfing candle, hinting at a potential shift in direction. This could indicate a possible reversal, but it’s essential to keep monitoring the market for further developments.
Falling wedge pattern
As a crypto investor, I’m observing that DOT appears to be consolidating inside a falling wedge formation on the daily chart, which typically suggests a potential shift towards a bullish trend.
It seems like the DOT/USDT pair has hit its lowest point and could potentially surge upwards, indicating a possible bullish trend ahead.
source: TradingView
Keep an eye on the upper boundary of this descending triangle as a potential point of interest. It’s likely that the price will test this level again successfully before it increases significantly, particularly given the expected ‘altseason’ in Q4 of 2024.
Weekly support and stochastic RSI
Over the past week, the floor for Polkadot’s [DOT] has shown remarkable resilience, representing the bottommost point for DOT. This critical support level has successfully thwarted five instances of price declines. Following a peak in price, the value retreated back to this robust support.
The current RSI for DOT/USDT based on random sampling indicates an overbought state, implying that the recent gains might be the start of a more significant upward trend.
The potential increase might be impacted by the predicted interest rate decreases, a circumstance that could favor altcoins such as DOT.
Open interest
At the moment of reporting, the open interest for Polkadot’s DOT is displaying a favorable Open Interest-weighted funding rate of 0.0046%. In simpler terms, this means that traders holding long positions in Polkadot are currently being paid a small fee due to market conditions, which indicates a positive outlook.
As a researcher analyzing the market dynamics of DOT, I’ve noticed a trend suggesting optimism among traders. Long position holders are currently paying a premium of 0.0046% to short position holders, which signifies their belief that the price will increase in the near future. This premium payment is a clear demonstration of confidence in DOT’s upward trajectory.
The total open interest for Polkadot’s price levels ranging from $7.917 to $8.004 is approximately $35.838 million, while the open interest for the range between $5.30 and $5.39 is about $8.33 million.
Polkadot statistics
right now, the total value of all Polkadot coins in circulation is approximately 7.2 billion dollars, and over the past 24 hours, there have been 143 million dollars worth of these coins traded – this represents a rise of around 15.13%.
1. The 1.91% volume-to-market ratio implies a stable market with limited price changes, as large swings are not common. Currently, there are 1.49 billion DOT tokens in circulation, which aligns with the fully diluted market cap of $7.2 billion.
Read Polkadot [DOT] Price Prediction 2024-2025
At the current $5.0 mark, DOT is encountering a challenge, but overall, the longer-term perspective continues to show optimism. This bullish stance is underpinned by robust technical trends, favorable investor attitudes, and steady market indicators.
With the altseason on the horizon, DOT is well-positioned for potential gains.
Read More
- DOGS PREDICTION. DOGS cryptocurrency
- SQR PREDICTION. SQR cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- CLOUD PREDICTION. CLOUD cryptocurrency
- STG PREDICTION. STG cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- ETH PREDICTION. ETH cryptocurrency
2024-08-26 12:08