Polkadot’s price action has entered a critical juncture with a retest of the $8.60 level, paving the way for significant price action.
Recent trading patterns and market conditions are creating a promising picture, but it can be said that the $8.60 level remains a critical point for investors to pay attention to in this volatile environment.
“A successful retest could take DOT to $12.61, which would signal a significant bull move,” an analyst at COINOTAG said.
Polkadot (DOT) is facing a critical price action at $8.60—investors are eyeing a rally to $12.61 or a drop to $4.15, marking a major turning point for the cryptocurrency.
The $8.60 level is more than just a number for Polkadot; historically, this level has been a major turning point that has determined the asset’s price action. Critical retests at this level have previously led to major price increases exceeding $50.
However, the lack of support this year has reminded investors of the importance of this level, especially considering the losses from failed retests. If Polkadot can hold strong at $8.60, analysis predicts a rally to $12.61—an increase of over 100%. However, if it loses this support, it could see a drop back to lows around $4.15.
Currently trading at around $8.86, Polkadot is up 4.40% over the last 24 hours and has gained 16.97% over the last seven days. This momentum is supported by a strong trading volume of $1.03 billion, giving DOT a market cap of around $13.48 billion.
According to Coinglass data, open interest increased by 8.74% to $499.25 million, with a 22.03% increase in trading volume to $915.97 million.
Notably, the OI-weighted financing rate has remained positive since mid-November, confirming the demand for long positions, which is also supported by the increases in financing rates seen on November 12 and 18.
On-chain analytics for Polkadot present a mixed picture. DefiLlama reports a Total Value Locked (TVL) of $55.89 million, representing a 27.44% decrease in the last 24 hours. This decrease suggests caution, but the market does not always reflect this, as positive funding rates continue.
Despite the decline in TVL, rising open interest and strong funding rates suggest a resilient sentiment among investors, supporting a broader push for price appreciation.
From a technical perspective, Polkadot is making a mostly bullish move, breaking out of a bullish descending triangle pattern. Traders can look for further confirmation of this trend by watching the recent move above the $8.60 level.