Polkadot
Will Polkadot breakout soon? 2 major levels say yes!
Polkadot’s price consolidates within a falling wedge, signaling a potential breakout as Futures Open Interest hits $190M.
- Polkadot consolidated in a falling wedge pattern at press time, signaling potential for a major price breakout.
- The Futures market surged with $190M in Open Interest, suggesting renewed trader confidence in DOT.
Polkadot [DOT] traded at $4.56 at press time, experiencing a 3.68% increase in the last 24 hours, according to AMBCrypto’s look at Coingecko.
The market cap has risen to $6.76 billion, positioning DOT as the 15th largest crypto.
In the past 24 hours, the price has fluctuated, reaching a low of $4.39 before trending upward. This movement indicated a potential for further growth, driven by improving market sentiment.
The 24-hour trading volume has seen a slight increase to $104.9 million, reflecting a 1.59% rise, which may suggest increased investor interest.
Polkadot’s falling wedge pattern
At press time, Polkadot appeared to be consolidating within a falling wedge pattern on the daily chart. According to crypto analyst Captain Faibik, this pattern suggested that DOT may have –
“Bottomed out and is ready to bounce back.”
The price was rebounding off the lower trendline of this channel, which signaled the possibility of a short-term recovery.
The next resistance level lay along the upper trendline, while support was maintained near the lower boundary of the channel.
Source: X
The Bollinger Bands, which measure market volatility, showed that Polkadot has been in a downtrend since mid-June, consistently testing the lower band.
DOT was attempting a recovery at the time of writing, but was facing resistance around the middle band at $4.60.
A breakout above this resistance could indicate a shift towards a bullish trend, whereas failure to do so might lead to further consolidation.
The Chaikin Money Flow (CMF) indicator read 0.09 at press time, indicating a moderate inflow of capital into DOT.
This could support the recent upward movement, though the inflow remains relatively weak and not strongly bullish. For sustained buying pressure, a stronger uptick in CMF is required.
Also, the Relative Strength Index (RSI) was at 40.40, placing DOT in bearish territory. However, the RSI has improved from previous oversold conditions, indicating that momentum is gradually picking up.
Should the RSI continue to rise above 50, it could signal a potential reversal towards a more neutral or bullish trend.
Is a breakout looming?
In the Futures market, DOT’s Open Interest stood at $191.44 million, per Coinglass data. This marked a moderate recovery from recent lows, suggesting renewed participation from traders.
Despite this rebound, Open Interest remained below previous peaks, reflecting cautious sentiment among market participants.
Source: Coinglass
Moreover, total liquidations in DOT Futures amounted to $34.15K in short positions and $56.25K in long positions, with Binance [BNB] accounting for the majority.
The liquidation data showed that both long and short traders were affected, with a slight bias towards long liquidations.
Read Polkadot [DOT] Price Prediction 2024-2025
Thus, traders were still navigating uncertainty in the market, with price volatility impacting both sides.
Source: Coinglass
Finally, Polkadot’s press time market behavior suggested the potential for a significant breakout, as the asset tested key resistance levels within the current pattern.
