- DOT’s price dropped by over 2% in the last 24 hours.
- However, market indicators looked bullish on the token.
The crypto market went into a consolidation phase as most crypto’s daily charts turned red. Polkadot [DOT] was not averse as well, as the token’s price dropped in the recent past.
However, it could be that DOT might just be testing a crucial support level.
Polkadot turned bearish
According to CoinMarketCap, DOT’s value surged by over 12% in the last seven days. But the trend changed in the recent past, as the token’s value dropped by more than 2% in the last 24 hours alone.
At the time of writing, the token was trading at $9.70 with a market capitalization of over $13 billion, making it the 13th largest crypto.
However, this might just be the shorter part of the story, as DOT was testing support levels, as per World Of Charts.
If the token manages to test it, a massive bull rally can be expected, which might allow the token to increase its price by 200%.
To determine whether that outcome is likely, AMBCrypto checked Polkadot’s on-chain data.
Investors look under-confident
Our analysis revealed that DOT’s Social Volume remained relatively high throughout the last week. However, bearish sentiment around the token was high, as evident from the drop in its Weighted Sentiment.
Despite the drop in bullish sentiment, derivatives market statistics looked optimistic. The token’s Funding Rate spiked, reflecting the token’s demand in the derivatives market.
Its Open Interest also spiked in the last few days.
Source: Santiment
The possibility of DOT once again gaining upward momentum, as seen in technical indicators, is to be considered. For instance, the MACD displayed the possibility of a bullish crossover.
Read Polkadot’s [DOT] Price Prediction 2024-25
On top of that, the token’s Chaikin Money Flow (CMF) also registered an uptick and was headed further upward from the neutral mark. These two indicators clearly suggest that DOT’s price might rise soon.
However, the Money Flow Index (MFI) seemed bearish at press time, indicating that the possibility of the token’s price dropping can’t be ruled out.
Source: TradingView
