- DOT could witness resistance around $8.6 in the coming days.
- Polkadot is down 13% over the past seven days and the indicators have been looking bearish.
Dot [DOT] is quickly making its way to the list of the top 10 cryptos by market capitalization, thanks to its price gains. Except DOT, Solana [SOL] And Avalanche [AVAX] also showed promising performance in the recent past.
However, things for DOT looked better than for the rest of the two, considering the latest data.
Will the price of Polkadot skyrocket in 2024?
Polkadot recorded a huge price increase during the last month of 2024. Per CoinMarketCapDOT is up more than 48% in the last 30 days.
At the time of writing, DOT was trading at $8.13 with a market cap of over $10 billion.
Due to the bull rally, DOT managed to become the 11th largest cryptocurrency by market capitalization. In addition to Polkadot, SOL and AVAX also posted promising gains during the same period.
But Tony, a popular crypto analyst, pointed out that while the last two had a few resistance levels to witness, DOT had a clean path forward as it had yet to reach its first resistance level.
#Dot $POINT the bull run has only just begun
As compared to $AVAX And $SOL$SOL has reached the second resistance$AVAX has reached the first resistance$POINT has not yet reached the first resistance
As we can see #POINT has a longer duration and is a better buy due to the bullish run pic.twitter.com/yT3kSwHAvk
— Tony ₿itcoin⚡ (@Toni_Bitcoin) December 31, 2023
Therefore, to better understand whether DOT’s path forward is simple, AMBCrypto checked Polkadot’s liquidation heatmap. Our analysis showed that things were more complicated than they seemed at first glance.
The token witnessed a massive liquidation surge around $9.2 after which the price started falling. Polkadot’s liquidation then increased when its value reached $8.6, causing a further price drop.
Hence, POINT need to move beyond these levels to spark a bull rally in 2024.
Source: Hyblock Capital
How likely is it that DOT will start a bull rally?
Despite the price increase of DOT last month, the price action has turned bearish in the recent past. This was evident from the fact that DOT fell by 13% in the last seven days.
However, the good news was that as the price of the token fell, the Open Interest also fell. Whenever the Open Interest falls, it increases the chance of a trend reversal, indicating a price increase.
It was interesting to note that although the price of DOT fell, the financing rate remained high, reflecting the popularity of DOT in the derivatives market.
Source: Santiment
Read Polka dots [DOT] Price prediction 2023-24
During inspection POINTOn the daily chart, AMBCrypto found quite a few bearish indicators. For example, Polkadot’s price reached the upper limit of the Bollinger Bands at the time of writing. The MACD also developed into a bearish crossover.
DOT’s Relative Strength Index (RSI) moved south, raising the likelihood of a continued downtrend in the coming days.
Source: TradingView