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Polkadot: Can DOT hold above $5? Key levels to watch now!

2min Read

Polkadot consolidates within a falling wedge pattern on daily timeframe as lower timeframe breaks out.

Polkadot

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  • DOT/USDT pair breaks and rejects off $5 resistance.
  • Rising open interest and volume increase, signals bullish sentiment.

Polkadot [DOT] broke above the $5.0 price level but faced immediate rejection. This price action on the 4-hour time frame highlights DOT’s struggle at this critical resistance point.

The $2.5 – $4 range is a psychological level serving as both daily and weekly resistance. DOT/USDT pair is currently ascending within a parallel channel.

Source: TradingView

As of press time, DOT had gained 10.54% this week. The overall market bias for altcoins remains bullish, despite the rejection with a bearish engulfing candle, signaling a possible reversal.

Falling wedge pattern

Additionally, DOT is consolidating within a falling wedge pattern 0n the daily timeframe, a structure often indicative of a potential bullish reversal.

The price action of DOT/USDT pair appears to have bottomed out and may be preparing for a bullish breakout.

source: TradingView

The next key level to watch is the upper trendline of this falling wedge, with a successful retest likely before price rallies further, especially with altseason anticipated in Q4 of 2024.

Weekly support and stochastic RSI

Polkadot’s [DOT] weekly support has been holding strong, marking the lowest point for DOT. This support level has rejected price drops five times, and after a higher high was made, the price retracted back to this support.

The stochastic RSI for DOT/USDT is currently oversold, suggesting that the gains seen this week could be the beginning of a larger trend.

Source: TradingView

This anticipated upward movement could be influenced by the expected rate cuts, which would benefit altcoins like DOT.

Open interest

As of press time, Polkadot’s [DOT] open interest is showing a positive OI-weighted funding rate of 0.0046%.

This indicates bullish sentiment on DOT, as traders with long positions are paying 0.0046% to those with short positions, reflecting confidence that prices will rise.

Source: Coinglass

Polkadot’s open interest ranging between $7.917 and $8.004 price levels total $35.838 million, while the $5.30 to $5.39 range has an OI of $8.33 million.

Polkadot statistics

Polkadot’s market cap currently stands at $7.2 billion, with a 24-hour trading volume of $143 million, marking a 15.13% increase.

This has resulted in a 1.91% volume-to-market ratio, indicating market stability with minimal price fluctuations. The total and circulating supply of DOT is 1.49 billion, matching the fully diluted market cap of $7.2 billion.

polkadot

Source: DefiLlama


Read Polkadot [DOT] Price Prediction 2024-2025


While DOT faces a test at $5.0 level, the broader outlook remains bullish, supported by strong technical patterns, positive market sentiment, and stable market statistics.

With the altseason on the horizon, DOT is well-positioned for potential gains.

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Lennox is a professional financial market analyst who's enthusiastic about blockchain, cryptos, and web3. He started blogging about cryptos back in 2019 and has since never looked back. His work revolves around looking at crypto-projects analytically on a technical and on-chain level, while also making sure it's palatable to the general audience.
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