July 13, 2024

Westside People

Complete News World

Polkadot: Here’s Why DOT Price Is Poised to Resurge to $7

Polkadot: Here’s Why DOT Price Is Poised to Resurge to
  • DOT market indicators suggest that the price may continue to rise with targets reaching $6.96.
  • Capital has been flowing into the token and one analyst is predicting a breakout.

In a surprising turn of events, Polkadot [DOT] The cryptocurrency has become the most bullish among the top 20 cryptocurrencies in the market. At the time of writing, DOT was trading at $6.24, representing a 5.18% increase in the last 24 hours.

However, the uptrend doesn’t seem to be stopping anytime soon. This is based on the indicators revealed by the liquidation heatmap. In simple terms, the liquidation heatmap predicts price levels where large-scale liquidations may occur.

The Ministry of Transport is ready to get out of the woods.

Liquidation occurs when the exchange closes a trader’s position due to increased price volatility. This also happens when the trader does not have enough money to keep the position open.

But aside from that, the heatmap shows areas of high liquidity, indicating price levels where the cryptocurrency might move. For Polkadot, AMBCrypto noted high liquidity between $6.45 and $6.96.

Polkadot Price Targets

Source: Highblock

Given this data, if buying pressure increases, DOT price could build on its recent high. If so, the token could reach $7 or trade above the level.

Is there a breakthrough on the way?

Another indicator that supported this rise was the Weighted Sentiment Index. As an expanded view of the volume of social media, the Weighted Sentiment Index measures the broader market’s perception of a project.

For example, if the number of positive comments on the Internet is greater than the number of negative comments, the reading will be positive. However, a greater number of negative comments will push the reading to negative.

See also  Keystone cleanup turns a remote Kansas Valley into a small town

At the time of writing, Polkadot’s Sentiment Weighted Index, which was previously at -0.143, has moved to 0.307. This reading indicates growing confidence in DOT’s potential.

If this continues, it could lead to increased demand for the token. If this happens, the price of DOT could return to $7 within a few days from the time of writing. As with sentiment, open interest (OI) has supported the price increase.

The term “open interest” refers to the sum of all open contracts in a derivatives market. When this interest increases, it means that net positions are increasing. It also means that traders are deploying capital to profit from DOT price movements.

However, the decline indicates that traders are withdrawing funds and closing their positions. At the time of writing, Polkadot’s average open interest was He did to 133.35 million.

DOT Traders Interest Increased

Source: Santiment

If this increase continues, it could lead to a further rise in prices, bringing the price of a barrel of DOT to $7.

Additionally, some analysts at X shared a similar view that DOT price could continue to rise. One of them is Captain Vibek.

Read Polkadot [DOT] Price forecast 2024-2025

According to Vibek, DOT was close to a major breakthrough. In his post on X, the analyst said: Share his thesis Through a plan, and specifically written,

“The DOT has rebounded nicely and is about to break out, so watch it closely.”