Polkadot: Here’s why DOT’s price is all set to revisit $7

DOT

Based on my analysis as an experienced cryptocurrency market analyst, I believe Polkadot (DOT) is showing strong signs of continued growth. The market indicators suggest that the price could potentially reach targets as high as $6.96, as evidenced by the high liquidity levels between $6.45 and $6.96 indicated in the Liquidation Heatmap.

In an unexpected development, Polkadot (DOT) emerged as the leading gainer among the top 20 cryptocurrencies currently available in the market. The latest price update indicates that DOT is being traded at $6.24, marking a noteworthy rise of 5.18% over the past 24 hours.

Based on my analysis of the market trends using the Liquidation Heatmap, it appears that large-scale price drops, or liquidations, may continue unabated for the time being. The Heatmap serves as a valuable tool in predicting potential price levels where these events could transpire.

DOT is ready to be pulled out of the woods

When an exchange forcibly ends a trader’s market position due to significant price volatility or because the trader lacks sufficient funds, this is referred to as liquidation.

Besides that point, a heatmap reveals zones of significant trading activity, suggesting potential price shifts for cryptocurrencies. In the case of Polkadot, according to AMBCrypto’s analysis, there was notable liquidity between $6.45 and $6.96.

Polkadot: Here’s why DOT’s price is all set to revisit $7

Given the current data, an uptick in buying pressure might lead DOT‘s price to further escalate, potentially reaching or even surpassing the $7 mark.

Is a breakout on the way?

From my perspective as an analyst, one significant marker that reinforced the surge was the Weighted Sentiment. I interpret this metric as a more comprehensive reflection of public opinion regarding a particular project within the investment community.

If there are more favorable comments than unfavorable ones available online, the overall sentiment is likely to be positive. Conversely, a greater volume of negative comments can shift the tone to a negative one.

At the current moment of reporting, Polkadot’s Weighted Sentiment score has shifted from a previous -0.143 to a new 0.307. This shift suggests an increasing optimism among investors regarding the prospects of Polkadot and its DOT token.

As a researcher, I’ve observed that if the current trend continues, there could be an increased demand for the DOT token. In such a scenario, I anticipate that the price of DOT may revisit the $7 mark within a few days from now. The Open Interest (OI) seems to support this positive sentiment as well.

As a derivatives market analyst, I would explain that Open Interest represents the total number of open contracts in the market for a particular derivative, such as DOT. An uptick in Open Interest signifies an increase in net positioning among traders. In simpler terms, this means that more traders are actively engaging in trades related to DOT, intending to profit from its price fluctuations.

Traders may be withdrawing funds and liquidating their positions, as indicated by a decline in open interest. Currently, the open interest for Polkadot stands at approximately 133.35 million dollars.

Polkadot: Here’s why DOT’s price is all set to revisit $7

Should this increase continue, it could back a further price hike that takes DOT to $7.

Among the analysts at X, there’s a consensus that the DOT price may further rise. One of these analysts is Captain Faibik who holds this belief.

Read Polkadot [DOT] Price Prediction 2024-2025

Based on Faibik’s perspective, DOT was on the verge of making a notable price advancement. In his publication on X, he presented his viewpoint using a graph, and explicitly stated,

“DOT has bounced back Nicely and is on the Verge of a wedge breakout, so keep a close eye on it.”

2024-07-08 08:08

DOT is ready to be pulled out of the woods

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