Polkadot (DOT), thanks to price increases, is among the top 10 cryptocurrencies by market value. In addition to DOT, Solana (SOL) and Avalanche (AVAX) have also displayed promising performances in the recent past. However, considering the latest data, things seem to be looking better for DOT compared to the other two.
“DOT Has Not Reached the Resistance Level Yet!”
The altcoin recorded a significant price increase in the last month of 2024. According to CoinMarketCap, DOT has shown an increase of over 48% in the last 30 days. At the time of writing, DOT is trading at $8.13 with a market value of over 10 billion dollars. Thanks to the bull rally, DOT managed to become the 11th largest cryptocurrency by market value. Alongside Polkadot, SOL and AVAX also achieved promising gains during the same period. However, a popular cryptocurrency analyst, Tony, pointed out that despite the latter two having several resistance levels, DOT has a clear path ahead as it has not yet reached its first resistance level.
Therefore, to better understand whether DOT’s progress will be straightforward, experts checked Polkadot’s liquidation map. The token witnessed a significant increase in liquidation around $9.2 and then began to decline in price. Polkadot’s liquidation increased when its value reached $8.6, which led to a further decrease in price.
DOT’s 2024 Forecast!
For this reason, DOT may need to rise above these levels to start a bull rally in 2024. Despite the increase in DOT’s price last month, its recent price movement has entered a downward trend. The fact that DOT has experienced a 13% decrease in the past seven days clearly demonstrates this. However, another positive development was the decline in open positions as the token’s price fell. When open positions decline, the probability of a trend reversal may increase, which could indicate rising prices.
The fact that DOT’s funding rate remained high while its price was falling could be an interesting reflection of its popularity in the derivatives market. After checking DOT’s daily chart, many indicators of a downturn were found. For example, at the time of the news release, Polkadot’s price had touched the upper limit of the Bollinger Bands. Its MACD also expanded towards a bearish crossover. DOT’s Relative Strength Index (RSI) moved downward, increasing the likelihood of a continued downtrend in the coming days.
