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

• DOT’s market indicators suggest that the price could continue to rise with targets as high as $6.96.
• Capital flowed in the token’s direction and an analyst predicted a breakout.

In a surprising turn of events, Polkadot [DOT] became the top gainer out of the top 20 cryptocurrencies in the market. At press time, DOT changed hands at $6.24, representing a 5.18% increase in the last 24 hours.

However, it does not seem like the uptrend will stop soon. This was based on indications revealed by the Liquidation Heatmap. In simple terms, Liquidation Heatmap predicts price levels where large-scale liquidations might occur.

DOT is ready to be pulled out of the woods

Liquidation happens when an exchange closes a trader’s position due to increasing price fluctuations. This also happens when the trader has an insufficient to keep the position open.

But apart from that, the heatmap shows high areas of liquidity, which indicates price levels where a crypto might move. For Polkadot, AMBCrypto noticed that there was high liquidity between $6.45 up to $6.96.

Source: Hyblock

Considering this data, if buying pressure increase, DOT”s price could build on its recent increase. If that is the case, the value of the token could hit $7

Is a breakout on the way?

Another indicator that supported the increase was the Weighted Sentiment. As an extended view of social volume, Weighted Sentiment gauges the perception the broader market has about a project.

For instance, if there are many positive comments online than negative ones, the reading will be positive. However, a higher number of negative comment would push the reading negative.

At press time, Polkadot’s Weighted Sentiment, which was previously. -0.143 had moved to 0.307. This reading implies growing confidence in the potential of DOT.

If sustained, this could lead to higher demand for the token. Should this be the case, DOT’s price might revisit $7 in a few days from the time of writing. Like the sentiment, the Open Interest (OI) backed a price increase.

Open Interest refers to the sum of all contracts open in the derivatives market. When it increases, it means that net positioning is increasing. This also implies that trader are deploying capital to capitalize on DOT’s price movement.

However, a decrease suggests that traders are taking money out and closing their positions. At press time, Polkadot’s Open Interest had risen to 133.35 million.

Source: Santiment

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

Additionally, some analysts on X shared a similar view that DOT price might continue to increase. One of them is Captain Faibik.

Read Polkadot [DOT] Price Prediction 2024-2025

According to Faibik, DOT was close to a significant breakout. In his post on X, the analyst shared his thesis via a chart, and specifically wrote,

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