- DOT approaches the crucial support of $ 3.74, with a potential reversal if it remains strong.
- Rising social volume and open interest indicate the attention and optimism of investors for a leap.
Polkadot [DOT] is currently confronted with a crucial moment in its price action and the critical level of support of $ 3.74 is approaching, which could determine the next Grand Price Movement.
At the time of the press, Polkadot was traded at $ 4.78, which reflects an increase of 1.59%.
The cryptocurrency recently had to deal with downward pressure, making it closer to important support zones.
However, the real question is whether $ 3.74 will act as a support that is strong enough to feed a reversal or that DOT will break and activate further.
What are the most important levels to pay attention to DOT?
The price of Polkadot has been in a downward trend in recent weeks, with the recent movement pushing it closer to support $ 3.74.
This level was rather a strong area to buy, and many expect it to play a crucial role in future price promotion.
If this level retains, this can offer the catalyst for a reversal, with potential upward goals for $ 5.25 and $ 6.50.
However, if the price breaks below $ 3.74, DOT could decrease further, making it possible to reach the $ 3.50 level before a significant rebound occurs.
Source: TradingView
Polkadot gets Momentum
In addition to the price promotion, social dominance and social volume for DOT have increased steadily. Social volume 92 reached on 19 February, which points to increasing attention for the cryptocurrency.
The rising social dominance, on the press of 0.4417%, suggested that Polkadot Momentum won in the digital currency room.
These rising statistics can indicate increased investor’s interests, which can lead to increased purchase activity if the price of important levels bounces.
That is why, despite the recent market weakness, the growing social presence of DOT can offer a significant increase in its price in the short term.
Source: Santiment
Market sentiment affects Dot
The market sentiment of Polkadot is formed by both open interest and the long/short ratio. Open interest rose has risen by 1.68%and reached $ 316.51 million at the time of the press, which suggests that more traders were on the market.
This increase in the open interest indicated that the expectation of a considerable price movement, whether it is up or down,. Moreover, the point -long/short ratio was balanced, with a light edge to long positions at 50.95%.
This indicated that investors were hopeful for a bullish reversal, but the uncertainty lingered because of the current downward trend.
That is why market participants will keep a close eye on the support level of $ 3.74 to determine the next step.
Source: Coinglass
Can $ 3.74 Polkadot’s turning point be?
The price of Polkadot is at a critical moment. With rising social dominance and volume, along with increased open interest, there is a chance that the level of support will be $ 3.74 and cause a bullish reversal.
However, if this level breaks, DOT could, however, decrease further. In conclusion, if $ 3.74 applies, Polkadot will probably return to higher price levels. If not, then further disadvantage is possible.