- DOT showed signs of bottoming out, with a potential breakout from the descending channel targeting $7
Momentum seemed to be building, with whale accumulation seen too
As a seasoned researcher with over two decades of experience in the cryptosphere, I must say that the current state of Polkadot (DOT) is intriguing and potentially promising. The signs of bottoming out, coupled with the building momentum and whale accumulation, suggest that we might be on the cusp of a significant rebound for DOT in Q4.
Today, Polkadot‘s DOT token is drawing attention once more as it seems to have found its base following a lengthy decline on the price graphs.
According to cryptocurrency analyst Captain Faibik on platform X (previously known as Twitter), there’s a strong possibility that DOT could experience a significant resurgence, with an anticipated bullish surge in the last quarter of this year. His assessment indicates indicators of substantial accumulation, suggesting that DOT might be preparing for a major upward trend.
Currently, DOT is being traded at $4.32, which represents a 2.27% increase over the past 24 hours. This rise might imply a possible breakout, but the question remains: How reliable is this prediction?
A key technical setup – Breaking out of the downtrend
Since January 2024, DOT‘s price has been moving within a downward trending channel, gradually decreasing in value. But, recent analysis reveals that the token is currently rebounding from its lower support level at $4.19. A descending channel is a pattern that, when breached upwardly, usually indicates a shift in trend and a resurgence of bullish energy.
The previously discussed examination suggests that DOT could have reached its bottom at approximately $4. This creates a strong foundation for future buying. If DOT manages to break free from this price range, the significant resistance points would be found between $5 and $6. Potential upward targets could reach as high as $7 by the end of Q4.
On-chain activity: Whale accumulation is rising
It appears that large investors (whales) are showing strong belief in the future success of DOT by actively purchasing it. Currently, there are approximately 1.492 billion DOT in circulation, giving the altcoin a market value of around $6.44 billion.
Moreover, the trading volume of approximately $86.22 million over a 24-hour period suggests a consistent level of liquidity, even amidst recent market fluctuations. Furthermore, the clearing of $48.69k in short positions indicates a potential short squeeze might be underway.
Technical indicators – Is momentum gaining strength?
As I observe at this moment, the Relative Strength Index (RSI) has shown an enhancement, shifting from an oversold state to a level of 60.81. This could indicate a potential growth in positive momentum.
As I’ve been analyzing the price movements of DOT, I noticed that it appears to be touching the upper Bollinger Band around $4.33. This trend frequently suggests increasing buying pressure on the charts. If the price persists in closely following the upper band, it might be a sign of an upcoming breakout.
Is DOT ready for a bullish Q4?
As its technical infrastructure strengthens and the presence of whales increases, it seems that DOT could be poised for a possible surge in the fourth quarter.
Moving past significant barriers at around $5 and $6 might drive the price up even further, possibly peaking at $7, based on past trends. Yet, it’s crucial to verify a breach in these levels to reinforce the optimistic viewpoint.
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2024-09-14 09:43