Polkadot: This is why DOT price is set at $7

Polkadot: This is why DOT price is set at
  • DOT market indicators suggest that the price may continue to rise with targets reaching $6.96.
  • Capital has been flowing in towards the token and one analyst is predicting a breakout.

In a surprising turn of events, Polkadot [DOT] It became the first gainer among the top 20 cryptocurrencies in the market. At the time of writing, DOT was trading at $6.24, which represents a 5.18% increase in the past 24 hours.

However, the uptrend doesn’t seem to be stopping anytime soon. This is based on the indicators revealed by the liquidation heatmap. In simple terms, the liquidation heatmap predicts price levels where large-scale liquidations may occur.

DOT ready to pull out of the woods

Liquidation occurs when an exchange closes a trader’s position due to increased price volatility. This also happens when a trader does not have enough money to keep the position open.

But aside from that, the heatmap shows areas of high liquidity, indicating price levels that cryptocurrencies may move in. For Polkadot, AMBCrypto noted high liquidity ranging from $6.45 to $6.96.

Polkadot Price Targets

Source: Highblock

Given this data, if the buying pressure increases, the price of DOT could build on its recent increase. If so, the token could reach $7 or trade above this level.

Is a breakthrough on the way?

Another indicator that supported the increase was weighted sentiment. As an expanded measure of social size, weighted sentiment measures the broader market’s perception of a project.

For example, if there are more positive comments online than negative comments, the reading will be positive. However, a high number of negative comments will push the reading to negative.

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At the time of writing, Polkadot’s weighted sentiment, which was previously -0.143, has moved to 0.307. This reading indicates growing confidence in DOT’s potential.

If this continues, it could lead to increased demand for the token. If so, the price of DOT could return to $7 in a few days as of the time of writing. Like sentiment, open interest (OI) has supported the price increase.

Open interest refers to the sum of all open contracts in the derivatives market. When it increases, it means that net positions are increasing. It also means that traders are deploying capital to profit from DOT price movements.

However, the decline indicates that traders are withdrawing funds and closing their positions. At the time of writing, Polkadot’s open interest was Has risen to 133.35 million.

DOT traders' interest is high

Source: Feelings

If this increase continues, it could support another price surge that could take DOT to $7.

Additionally, some analysts on X shared a similar view that DOT price could continue to rise. One of them is Captain Vibek.

Polkadot reading [DOT] Price forecast 2024-2025

According to Vibek, DOT was close to a major breakout. In his post on X, the analyst Share his thesis Across the chart, he specifically wrote,

“DOT has bounced nicely and is about to break the wedge, so watch that closely.”

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