Mapping Polkadot’s future: Is DOT following Fantom’s path?

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  • DOT has surged by 6.36% on weekly charts.
  • An analyst eyed a historical surge, citing Fantom’s historical pattern.

As a seasoned analyst with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of market cycles and trends. After careful analysis of the recent surge in DOT, I find myself optimistic about its potential growth.

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Over the past week, Polkadot (DOT) has experienced a robust rebound from its previous slump. Following a dip to $3.9, the price of DOT has surged significantly, increasing by approximately 12.82%.

Equally, the altcoin has flipped SMA on daily charts, indicating a strong upward momentum.

Currently, DOT is being traded at $4.37. This represents a 3.63% rise in value compared to the previous day. Moreover, if we look at the weekly trends, there’s an additional 6.36% growth suggesting a continuation of the bullish trend.

Prior to this, DOT had been on a downward trajectory declining by 2.12% on monthly charts.

On the contrary, the markets have demonstrated resilience over the last day, fueled by a growing appetite for altcoins. Consequently, DOT’s trading volume experienced a significant jump of 12.30%, reaching $133.93 million. Moreover, its market capitalization saw an upward trend, increasing by 3.78% during this period.

Given the current market turbulence, it’s not surprising that the crypto community is showing renewed vigor. Notably, renowned analyst Ali Martinez posits that Polkadot could be poised for a surge, drawing parallels to Fantom’s past performance patterns. As an investor, this insight is intriguing and warrants closer examination.

Market sentiment

In his analysis, Martinez posited that DOT could be following Fantom’s footsteps.

Based on his analysis, it appears that the trend for DOT suggests a potential increase up to around $9.7, followed by a dip down to approximately $6.7, before potentially reaching a new annual peak of $20.

In the given context, Fantom saw a significant increase, jumping approximately 192.31% in value, rising from a minimum of $0.26 to reach $0.76.

Therefore, based on this analogy, DOT could surge by 357.67% holding the pattern constant.

What DOT charts says

According to Martinez’s analysis, there appears to be a positive trend in investor sentiment towards Polkadot, which might potentially lead to a substantial growth spike for this altcoin.

Over the last seven days, I’ve observed a consistent upward trend in Polkadot’s open interest denominated in USD across various exchanges. At this moment, the open interest for this altcoin stands at approximately $54.46 million, marking an increase from its initial value of around $46 million.

This implies that investors are bullish as they open new positions while holding the existing ones.

Furthermore, it’s worth noting that the Funding Rate on Dydx exchange within Polkadot has stayed above zero for the last seven days. This implies a greater number of investors have been opting for long positions rather than short ones during this period.

Such a trend implies that investors anticipate prices to rise in the near term.

To add more weight to the call for holding long positions, it’s worth noting that the liquidation for these positions has been decreasing. Specifically, over the last fortnight, the liquidation amount for longs dropped from approximately $2.1 million to about $2.36k at present.

This shows that longs are paying shorts during market downturns to hold their positions.

Polkadot’s [DOT] Price Prediction 2024–2025

What Next for Polkadot?

It’s clear that DOT is on an upward trend, boosted by optimistic market feelings. Given this, there’s potential for even greater growth in its value. Consequently, DOT has encountered several refusals at the $5.0 mark.

Leaving this current stage could propel the altcoin towards a value of $6.5 in the near future. If we consider an extremely optimistic outlook, Polkadot may regain its June peaks, reaching approximately $7.3.

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2024-10-16 01:12