- DOT’s market indicators indicate that the price may rise further, with price targets as high as $6.96.
- Capital flowed into the token and one analyst predicted a breakout.
In a surprising turn of events, Polkadot [DOT] became the biggest winner among the top 20 cryptocurrencies on the market. At the time of writing, DOT was trading at $6.24, representing a 5.18% increase in the past 24 hours.
However, it does not seem that the uptrend will stop anytime soon. This was based on indications revealed by the Liquidation Heatmap. Simply put, Liquidation Heatmap predicts price levels where large-scale liquidations can occur.
DOT is ready to be pulled out of trouble
Liquidation occurs when an exchange closes a trader’s position due to increasing price volatility. It also occurs when the trader has insufficient funds to keep the position open.
But beyond that, the heatmap shows high areas of liquidity, which indicates price levels where a crypto could be moving. For Polkadot, AMBCrypto noted that there was high liquidity between $6.45 and $6.96.
Source: Hyblock
Given this data, if buying pressure increases, DOT’s price could build on its recent rise. If so, the token’s value could reach $7 or trade above it.
Is an outbreak coming?
Another indicator that supported the increase was Weighted Sentiment. An extended look at social volume, Weighted Sentiment measures the perception the broader market has of a project.
For example, if there are more positive than negative comments online, the reading will be positive. However, a greater number of negative comments would make the reading negative.
At the time of going to press, Polkadot’s weighted sentiment, which previously stood at -0.143, had risen to 0.307. This value indicates growing confidence in DOT’s potential.
If this continues, it could lead to higher demand for the token. Should this be the case, DOT’s price could reach $7 again within a few days from the time of writing. Similar to sentiment, Open Interest (OI) supported a price increase.
Open Interest refers to the sum of all contracts open in the derivatives market. When it increases, it means that net positioning is increasing. This also implies that traders are deploying capital to profit from the price movement of DOT.
However, a decline suggests that traders are withdrawing money and closing their positions. At the time of writing, Polkadot’s Open Interest had risen to 133.35 million.
Source: Santiment
If this rise continues, it could lead to further price appreciation, taking DOT to $7.
Moreover, some analysts on X shared a similar opinion that DOT price could continue to rise. One of them is Captain Faibik.
Read Polkadot [DOT] Price Prediction 2024-2025
According to Faibik, DOT was close to a significant breakout. In his post on X, the analyst shared his thesis via a chart and specifically wrote:
“DOT has recovered nicely and is on the verge of a wedge breakout, so keep a close eye on it.”