- DOT’s high liquidity suggested the token might climb above $7.59
Project has approved a new upgrade that could fuel a long-term uptrend
As a researcher with experience in cryptocurrency market analysis, I’ve closely monitored Polkadot’s [DOT] price movement over the past 90 days, and it’s been a rollercoaster ride. The token has lost 23.60% of its value during this period, which is concerning. However, recent developments in the project offer promising signs for DOT holders.
Over the past 90 days, Polkadot‘s [DOT] price has been less than promising. The token has experienced a significant decrease in value, amounting to a loss of approximately 23.60%.
Based on AMBCrypto’s assessment, DOT token owners may be in for good news soon. One factor supporting this prediction is the liquidation heatmap.
The next leg is up
When a trader’s position is forcedly closed due to price movements or inadequate margin, this event is referred to as liquidation. By using a liquidation heatmap, traders are able to pinpoint regions with substantial market activity and liquidity.
Using Hyblock’s data at present, we identify a significant zone of accumulated liquidity lying between $7.59 and $7.70. Referred to as a “magnetic zone,” this area has the potential to attract further price action for Polkadot, potentially leading to both entry and exit points for investors.
Should the price of DOT reach $7.70 and purchasing demand grow stronger, there’s a good chance it will keep rising. On the other hand, if the stop-loss orders are clustered among the sellers in the order book, then the price could potentially reverse its direction.
Based on Michael van de Poppe’s analysis, the value of DOT has been underestimated. According to him, Polkadot’s strengths in scalability and security are the main factors contributing to its lower-than-expected trading price. In his own words, “Polkadot’s DOT token is being sold short due to its impressive scalability and security features.”
As a blockchain analyst, I’ve come to believe that DOT is currently underestimated in terms of its value. Recently, they rolled out the JAM Upgrade, and their primary focus now is on Reusable Web Assembly (RWA). The reason for this emphasis lies in DOT’s commitment to scalability and security.
Polkadot community “JAMs” to the rhythm
As a crypto investor, I’ve come across a term called the Join-Accumulate Machine (JAM) in relation to the Polkadot network. Just a few days ago, the Polkadot community held a vote to decide if we should go ahead and implement this upgrade.
The community quickly reached a consensus on implementing the JAM upgrade without much delay. This upgrade will enable the project to swap out the relay chain, potentially improving interactions with other blockchains.
As an analyst, I believe Polkadot’s focus on developing a platform for Real World Assets (RWAs) is a significant long-term catalyst for DOT‘s price growth. Consequently, it’s plausible that this trend could potentially drive the DOT price upwards, possibly reaching the $20 mark on charts.
Based on Santiment’s analysis, the token’s short-term prospect is worth revisiting. The Relative Strength Index (RSI) value was recorded as 48.43. Previously, this figure stood at 29.97, indicating that the token had been oversold in the market.
Based on my analysis as a researcher, DOT‘s latest rebound from its lows indicates a potential shift in momentum away from the bearish trend. If this trend continues and DOT manages to surmount the $0.50 neutral zone, my bullish hypothesis could be confirmed, potentially leading to a price rise towards $7.70.
As an analyst, I would note that according to AMBCrypto’s analysis, the one-day volatility was beginning to increase at the current moment in time. This signifies that substantial price swings may be on the horizon.
Read Polkadot’s [DOT] Price Prediction 2024-2025
If the buying pressure continues despite increasing market volatility, DOT‘s price increase could be confirmed. Conversely, if bears emerge, the outlook will become uncertain.
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2024-06-02 09:11