Altcoin Polkadot (DOT) has been at an important point in the cryptocurrency market in recent days. Although the DOT/USDT pair managed to break the $5 resistance level, it encountered a strong rejection at this level. Encountering resistance clearly reveals that DOT is struggling at $5.
What to Expect for DOT?
DOT is seen stuck in the $2.5 to $4 range, facing strong resistance on the daily and weekly timeframes. Currently rising within a parallel channel, the pair is showing signs of recovery with support from the weekly support level. The indicated support level has rejected the price of DOT five times. This resistance plays an important role in the current market conditions. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
DOT is seen consolidating in a falling wedge formation on the daily chart. Such a formation usually indicates a potential bull market reversal. The price action of the DOT/USDT pair may have made a bottom and the bottom level may be a sign of a possible rise. Especially the altcoin season expected in the fourth quarter of 2024 may support this rise.
The weekly support level and the stochastic RSI (Relative Strength Index) also provide positive signals for DOT’s potential future rally. DOT/USDT’s stochastic RSI is currently oversold, suggesting that the gains seen this week could be the start of a larger trend. The expected interest rate cuts are also expected to have a positive impact on altcoins.
Polkadot’s Open Interest Supports the Rise
Polkadot’s open data also supports the bullish trend. DOT‘s open interest currently shows a positive OI-weighted funding rate. The rate reflects investors’ confidence that prices will rise. DOT’s market cap currently stands at $7.2 billion, with a 24-hour trading volume of $143 million. The figures represent a 15.13 percent increase, indicating that the market is stable and price fluctuations are minimal.
Despite testing resistance at $5, Polkadot’s bullish signals remain strong from a broader perspective. Technically, Polkadot is well positioned for potential gains, supported by strong formations, positive market sentiment, and stable market data.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
