- Polkadot’s price declined marginally in the last 24 hours.
- A few of the metrics hinted at a price rise soon.
As a researcher with some experience in the crypto market, I believe that Polkadot’s recent price decline might be just a momentary setback before a potential significant price increase. The emergence of a bullish falling wedge pattern on DOT‘s price chart and increasing long positions indicate growing bullish sentiment around the token. However, it’s important to note that there are some bearish indicators as well, such as declining open interest and slightly downticked RSI and CMF. Therefore, investors should be cautious and keep an eye on DOT’s price action in the coming days before making any significant investment decisions. Ultimately, if DOT manages to break out of its resistance near $6.3, it could potentially see a bull rally towards $12 or even higher.
Over the past week, numerous cryptocurrencies experienced noteworthy growth. Among them, Polkadot [DOT] displayed more subdued movements. However, it’s essential to note that this could be a prelude to significant price action in the near future. Let’s delve into the recent developments surrounding Polkadot.
Polkadot’s possible move
According to recent data from CoinMarketCap, Polkadot’s price experienced a slight decrease in value over the past 24 hours. Currently, DOT is being traded at a price of $6.21 and boasts a market capitalization exceeding $8.9 billion, positioning it as the 14th largest cryptocurrency by market size.
The unfavorable price trend for cryptocurrencies, including DOT, led to a decrease in social activity as evidenced by a drop in social volume based on Santiment’s data, according to AMBCrypto’s analysis.
Additionally, DOT‘s weighted sentiment noticeably declined. This indication pointed towards a prevalence of negative sentiment towards the token in the market.
However, Polkadot has a trick up its sleeves that might soon result in DOT doubling its price.
Recently, the well-known cryptocurrency analyst, World Of Charts, shared on Twitter an image of a bullish falling wedge formation evident in the crypto’s price graph.
Since March, the price of the token has been confined to a specific pattern. It has not deviated significantly from this pattern in its recent developments. At present, the token is on the brink of breaking out of this established pattern.
Should that event transpire, it’s plausible that DOT‘s value could surge past a 84% increase. The potential bull market may even propel the token’s price upwards, potentially reaching $12 within the next few weeks.
Is a DOT rally around the corner?
To gain insight into Polkadot’s potential price action given the possibility of an uptrend, AMBCrypto examined its on-chain data for a clearer understanding.
According to AMBCrypto’s analysis of Coinglass’ data, the open interest for DOT decreased in tandem with its falling price. Typically, a reduction in open interest suggests that there is a heightened possibility of a shift in the current pricing trend.
Additionally, the difference between long and short positions in DOT grew, implying a larger number of bullish bets. Consequently, optimism towards DOT was on the rise.
As an analyst, I’ve noticed an intriguing development in the technical indicators. The MACD displayed a bullish crossover, which is usually a sign of potential buying opportunities. However, contrary to this optimistic signal, both the RSI and CMF indicated bearish trends. Specifically, the RSI exhibited a slight downtick, while the CMF registered a minimal decline. These bearish readings suggest that the ongoing price decrease may persist for some time in the near future.
Read Polkadot [DOT] Price Prediction 2024-2025
If the bears gain control in the near future, it’s possible that the price of DOT could fall as low as $5.7 within the next few days for investors to observe.
Despite this, if DOT is to change direction and become bullish, it is necessary for the price to surpass its resistance around $6.3 first. A significant increase in sell orders would occur once it reaches that level.
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2024-07-15 00:29