Resistance at Polkadot's $5.30 mark approaches –Elements shaping DOT's near future
Unleashing the Hidden Potential of Polkadot: Will DOT Soar Past $8?
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Could $8 Be within Reach for Polkadot [DOT]?
Polkadot, the much-touted Layer-0 protocol, is currently experiencing a surge, with an almost 10% rise and a stunning 19% increase in daily trading volume according to CoinMarketCap. at press time, DOT was trading at $5.07, aiming for a breakthrough above the crucial $5.30 barrier.
A Double Advantage for Polkadot
If Polkadot can sustain a position above $5.30, it could potentially pave the way for a journey to $8. A successful breakthrough at $8 might even open the door for a leap to $11.67.
However, a rejection at the $5.30 level could set the stage for a correction back to $4.70, or even a retest of the $4.30-$4.00 consolidation range.
Bullish Signals on the Horizon
Moving Average Convergence Divergence (MACD) is now leaning towards the bullish side, as the MACD line has crossed over the signal line, with the elevated histogram bars suggesting growing upside stress.
$5.30: The make-or-break point
The breakout from the prolonged base accumulation zone provides support for an optimistic outlook. However, if Polkadot fails to hold the $5.30 level, it could lead to a fakeout, particularly if accompanied by a declining volume.
Therefore, $5.30 emerges as a decisive turning point. Holding above this level could reinforce continuation, while a rejection might trigger a deeper pullback.
Liquidation Heatmap: A Glimpse into the Trading Behavior
CoinGlass’s liquidation map shows large long leverage positions ranging from $4.54 to $5.09. Polkadot has more long positions than short positions, with significant 25x and 50x leverage. This indicates traders are bullish, anticipating an upward trend.
The price of $5.14 is at the brink of the $5.30 resistance zone, where massive long positions might be liquidated. This could lead to moderate upward movement from $5.16 to $5.30, while relatively small short liquidations suggest bears may not have a strong grip on the downside yet.
Prepare for Takeoff: $5.30 or Crash Landing: $4.70?
If the price breaks above $5.30, it could cause short liquidations and generate upward pressure that could push prices towards the $5.50-$5.75 zone.
On the flip side, if the price plummets to $5.09 or lower, the tightly packed high-leverage longs might be liquidated. This could speed up a slide towards $4.80 or below. Despite the technical setup and positive sentiment, DOT's Active Addresses dropped to 62.1K at press time. This decline raises concerns about network activity and on-chain support for a breakout.
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Polkadot's Daily Active User Count Plummets 33%: Are Investors Abandoning the Network?
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DeCaprio Entertainment
- The surge in Polkadot's trading volume suggests high investor interest in the crypto technology, with potential for a breakthrough above $5.30, which could lead to a journey to $8, and maybe even beyond.
- The liquidation heatmap shows a dominant presence of bullish sentiments among the traders, with large long leverage positions at around $5.14, indicating a possible upward trend once the $5.30 barrier is breached.
