DOT traders could be in for good news soon. Over the past 90 days, Polkadot’s (DOT) price has experienced a significant decline of 23.60%.
DOT holders may soon find cause for celebration. One factor contributing to this positive outlook is the liquidation heatmap, indicating high liquidity that could potentially drive DOT’s price above $7.59. Additionally, the approval of a new project upgrade has been confirmed, which is expected to support a sustained upward trend in the long term.
Understanding DOT’s Market Dynamics and Analyst Insights
Liquidation in trading occurs when a trader’s position is closed due to price fluctuations or insufficient margin. However, tools like the liquidation heatmap help traders pinpoint areas with high liquidity, aiding in strategic decision-making for entries and exits.
Currently, Hyblock’s data highlights a liquidity concentration between $7.59 and $7.70 for Polkadot (DOT), termed as a magnetic zone where price movements are likely to gravitate.
If DOT surpasses $7.70 with increased buying pressure, further upward momentum can be expected. Conversely, if liquidation levels show a strong presence on the sell side of the order book, a price reversal could occur.
According to analyst Michaël van de Poppe, DOT has been undervalued despite its robust scalability and security features, highlighted by recent upgrades like the JAM Upgrade and focus on Real World Assets (RWA). He emphasizes DOT’s potential based on these strengths, stating:
“DOT is significantly undervalued in the blockchain space. Their recent JAM Upgrade and focus on scalability and security underline their potential in the market.”
Polkadot (DOT) Upgrade and Market Analysis
Polkadot (DOT) recently implemented the Join-Accumulate Machine (JAM) upgrade after a swift and unanimous community vote. This upgrade aims to enhance the relay chain’s capabilities and improve interoperability with other blockchains, potentially bolstering DOT’s ecosystem.
Moreover, Polkadot’s focus on integrating Real World Assets (RWAs) suggests a long-term growth trajectory for DOT. Analysts speculate this could drive the token’s price towards $20, albeit over an extended period.
In the short term, indicators like the Relative Strength Index (RSI) reflect DOT’s recent bounce from oversold conditions, with the RSI rising from 29.97 to 48.43. This indicates a shift away from bearish sentiment. If DOT maintains momentum and crosses the 50.00 neutral mark on the RSI, bullish sentiments could prevail, potentially pushing the price to $7.70.
Currently, expanding metrics suggest increased volatility in DOT’s price movements. Should this volatility align with rising buying pressure, DOT’s upward trend may continue. Conversely, increased bearish activity could neutralize these forecasts.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.