- The DOT/USDT pair rejects the $5 resistance after breaking it.
- Increasing open interest and increase in volumes are a sign of bullish sentiment.
polka dot [DOT] DOT broke above the $5.0 price level but faced immediate rejection. This price action on the 4-hour timeframe highlights DOT’s struggle at this crucial resistance point.
The $2.5 – $4 range is a psychological level that acts as both daily and weekly resistance. The DOT/USDT pair is currently climbing within a parallel channel.
Source: Tradingview
As of press time, DOT has gained 10.54% this week. Despite the bearish rejection, the overall market bias for altcoins remains bullish, indicating a possible reversal.
falling wedge pattern
Additionally, DOT is consolidating within a falling wedge pattern on the daily timeframe, a structure that often signals a potential bullish reversal.
The price movement of the DOT/USDT pair appears to have reached a bottom and is preparing for a bullish breakout.
Source: Tradingview
The next important level to watch is the upper trendline of this falling wedge, which is likely to see a successful retest before the price can rally further, especially with the altseason anticipated in the fourth quarter of 2024.
Weekly Support and Stochastic RSI
polka dots [DOT] The weekly support remains strong, which is the lowest point for DOT. This support level has rejected price declines five times, and after higher highs were formed, the price returned to this support.
The Stochastic RSI for DOT/USDT is currently oversold, indicating that the uptrend seen this week could be the start of a larger trend.
Source: Tradingview
This anticipated upward movement could be fueled by expected rate cuts, which would benefit altcoins like DOT.
open interest
As of press time, Polkadot’s [DOT] Open interest is showing a positive OI-weighted funding rate of 0.0046%.
This shows a bullish sentiment on DOT, as traders with long positions are paying 0.0046% to traders with short positions, indicating the belief that prices will rise.
Source: CoinGlass
Polkadot’s Open Interest totals $35.838 million between the $7.917 and $8.004 price levels, while the OI in the $5.30 to $5.39 range is $8.33 million.
Polkadot Stats
Polkadot’s market capitalization is currently at $7.2 billion, and its 24-hour trading volume is $143 million, representing an increase of 15.13%.
This has resulted in a 1.91% volume-to-market ratio, indicating market stability with minimal price fluctuations. DOT has a total and circulating supply of 1.49 billion, which corresponds to a fully diluted market capitalization of $7.2 billion.
Source: Defilama
Polkadot Read [DOT] Price Forecast 2024-2025
While DOT faces a test at the $5.0 level, the broader outlook remains bullish, supported by strong technical patterns, positive market sentiment, and stable market data.
As the altseason approaches, DOT is well-positioned for potential gains.