Coin World Report:
The market indicators for DOT suggest that the price may continue to rise, with a target price of up to $6.96. Funds are flowing towards the token, and an analyst predicts a breakthrough will occur.
In a surprising turn of events, Polkadot [DOT] has become the cryptocurrency with the highest increase among the top 20 cryptocurrencies in the market. At the time of writing, DOT is trading at $6.24, with a 5.18% increase in the past 24 hours.
However, the upward trend does not seem to be stopping anytime soon. This is based on the signs shown by the liquidation heatmap. In simple terms, the liquidation heatmap predicts price levels where large-scale liquidation may occur.
DOT is ready to break free from the predicament
Liquidation occurs when exchanges close positions due to intensified price fluctuations. This also happens when traders do not have enough funds to keep their positions open.
But apart from that, the heatmap shows areas of high liquidity, indicating price levels where the cryptocurrency may move. For Polkadot, AMBCrypto noted the presence of high liquidity between $6.45 and $6.96.
Considering this data, if buying pressure increases, the price of DOT may rise on top of the recent uptrend. If that happens, the token’s value may reach $7 or higher.
Is a breakthrough on the way?
Another indicator supporting the growth is the weighted sentiment. As an expanded view of social volume, weighted sentiment measures the broader market’s perception of a project.
For example, if there are more positive comments online than negative comments, the sentiment will be positive. However, more negative comments will make the sentiment turn negative.
At the time of writing, Polkadot’s weighted sentiment, previously at -0.143, has moved to 0.307. This means that people are becoming more confident in DOT’s potential.
If this continues, it may lead to an increase in demand for the token. If that happens, the price of DOT may reach $7 in the coming days after the writing of this article. Similar to market sentiment, the Open Interest (OI) also supports price increase.
Open Interest refers to the sum of all outstanding contracts in the derivatives market. When it increases, it means that net positioning is increasing. This also implies that traders are deploying funds to take advantage of DOT’s price fluctuations.
However, this decrease indicates that traders are withdrawing funds and closing positions. At the time of writing, Polkadot’s open interest has risen to $133.35 million.
If this growth continues, it may support further price increase, pushing DOT to reach $7.
Furthermore, some analysts at X share similar views that the price of DOT may continue to rise. One of them is Captain Fibonacci.
Read Polkadot [DOT] Price Prediction 2024-2025
According to Captain Fibonacci, DOT is nearing a major breakthrough. In a post on X, the analyst shared his research through charts and specifically wrote,
“DOT is bouncing well and is on the verge of a wedge breakout, so keep a close eye on it.”