Polkadot (DOT) Becomes the Most Bullish Cryptocurrency Among the Top 20 in the Market

The cryptocurrency has become the most bullish among the top 20 cryptocurrencies in the market. At the time of writing, DOT was trading at $6.24

Cryptocurrency Polkadot [DOT] has emerged as the most bullish among the top 20 cryptocurrencies in the market, to the surprise of many. At press time, DOT was trading at $6.24, showcasing a 5.18% hike over the last 24 hours.

This uptrend, however, seemed poised to continue, going by the indicators revealed by the Liquidation Heatmap. In simple terms, the Liquidation Heatmap predicts price levels where large-scale liquidations might occur.

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A liquidation occurs when an exchange closes a trader’s position due to high price volatility. It also happens when a trader does not have the funds to keep the position open.

But over and above that, the heatmap also reveals areas of high liquidity, indicating price levels where the cryptocurrency might move. In the case of Polkadot, AMBCrypto observed high liquidity present between $6.45 – $6.96.

Source: Highblock

Now, given this, if buying pressure builds, the price of DOT could be adding to its recent highs. If that happens, the token could be eyeing the $7-mark or trading above it.

Is A Breakout Imminent?

Another indicator that supported this uptrend was the Adjusted Sentiment. An aggregate view of the volume of social media activity, the Adjusted Sentiment Index gauges the broader market’s perception of a project.

For instance, if the number of positive comments online is higher than the number of negative comments, the reading will be positive. However, a greater number of negative comments will push the reading to the downside.

At the time of writing, Polkadot’s Adjusted Sentiment Index moved from -0.143 previously to 0.307. This reading signaled growing confidence in DOT’s potential.

If this continues, it could lead to an increased demand for the token. And if that happens, DOT’s price could be eyeing a return to the $7-mark within a few days from press time. Aiding the price movement, along with sentiment, was the Open Interest (OI).

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

However, a decline showcases that traders are pulling out funds and closing their positions. At press time, Polkadot’s average Open Interest amounted to 133.35 Million.

Source: Santiment

Now, if this continues to increase, it could lead to a further price rally, taking the price of a barrel of DOT to $7.

Moreover, several analysts on X shared a similar outlook where the price of DOT was bound to continue rallying. Captain Vibek was one of them.

Read Polkadot [DOT] Price Prediction 2024-2025

According to Vibek, DOT was bound for a major breakout. In his post on X, the analyst shared his thesis through a chart and specifically wrote,

“The DOT has rebounded nicely and is about to break out, so watch it closely.”

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