- The Polkadot breakout and technical indicators pointed to a potential rally towards $24
- Increasing development activities and social dominance highlighted the market’s growing interest in the altcoin
Polka dot [DOT] has captured the market’s attention with its recent price action, following a notable breakout from the descending channel pattern. Priced at $7.72 after gaining 6.54% at the time of writing, the altcoin seemed to be showing promising momentum on the charts.
Needless to say, the ongoing activity and numbers surrounding Polkadot have sparked curiosity about its possible direction in early 2025.
DOT breaks through important resistance with a strong position
Polkadot’s bearish channel breakout has set the stage for a potential rally, with the token regaining its bullish structure and forming a higher high.
Immediate resistance at $11.77 remains a key level to watch, while a successful break could pave the way to the $24 mark. These levels hinted at a potential upside of more than 100% over press time price, underscoring DOT’s promising trajectory.
Moreover, post-breakout consolidation was strong, giving traders confidence in the bank’s long-term strength. Simply put, Polkadot’s technical outlook remains in line with market expectations for sustainable growth.
Source: TradingView
Indicators point to room for further growth
At the time of writing, Polkadot’s technical indicators supported the bullish momentum, with several metrics highlighting the potential for further gains. The weekly MA crossing between the 9-day ($7.74) and 21-day ($5.78) moving averages also highlighted a confirmed bullish trend.
Furthermore, the RSI at 56.26 indicated that there may still be room for price appreciation before entering overbought territory. Also, the clear alignment of these indicators with the altcoin’s price action reinforced the view that Polkadot could be positioned for continued upward movement.
Source: TradingView
Social dominance increases with market interest
Polkadot’s social dominance increased from 0.432% to 0.551% – a sign of increased attention from the community and investors. Such a surge in market interest often correlates with stronger price performance as more participants engage with the ecosystem.
Furthermore, the increasing social activity can be interpreted as a sign of growing confidence in Polkadot’s potential, adding another layer of support to its bullish narrative.
Source: Santiment
Liquidations reflect bullish sentiment
Polkadot’s total liquidations also highlighted the active trading environment surrounding the token. At $7.76, $37,160 of shorts were liquidated compared to $26,610 of longs – a sign that bullish traders have gained the upper hand.
This disparity underscored confidence in Polkadot’s price trajectory and a supportive market environment for further gains.
Source: Coinglass
DOT development activity indicates network strength
Finally, Polkadot’s development activity bounced back to 68.79 after hitting a recent low, demonstrating the ecosystem’s commitment to growth. This steady upswing highlighted continued innovation and expansion – crucial for long-term sustainability.
Here it is worth noting that an increase in development activities reassures investors about the resilience of the blockchain and the potential for further adoption.
Source: Santiment
Read Polkadot [DOT] Price forecast 2024-2025
Polkadot’s declining channel breakout, bullish indicators and rising development activity pointed to strong momentum heading into 2025.
Therefore, it is very likely that DOT will continue this upward trajectory and generate significant profits. However, potential market volatility may temporarily hinder the advance.
