The DOT is at a critical point and faces an important resistance zone at USD 4,463.
New data suggests that the #DOT is ready to rebound.
Despite recent difficulties, including a 7.86% drop for the month, analysis of current data and technical patterns indicates strong momentum that could propel #Polkadot [DOT] into a move in the near term. From a technical perspective, Polkadot is poised to make a significant upward move. This configuration is often seen as a precursor to an important rally.
Although prices have recently bounced off the pattern resistance and are trending lower, this pullback is expected to continue until reaching the next pattern support at USD 4,277.
At this level, sufficient buying power is expected as resistance may be broken.
In this case, the next price target for the DOT will be set at USD 5.1. Conversely, a move in the opposite direction could send prices back to the lower boundary of the ascending triangle. Retailers are showing strong interest in the DOT; according to Coinglass, OI-weighted sentiment is significantly positive, indicating strong buying interest.
OI-weighted sentiment measures market sentiment by considering both directional sentiment (bullish or bearish) and open interest in options or futures contracts (especially futures in the case of the DOT).
This method focuses on sentiment related to large financial bets, which in the case of the DOT is predominantly bullish.
In addition, there was significant liquidation of short positions, with traders who held positions against the DOT taking heavy losses totaling $64.88 million as prices moved in an unfavorable direction.
Market strength against the DOT remains strong, as evidenced by the Relative Strength Index (RSI), which is trending upward and has reached new highs, indicating that bullish sentiment is in place to push DOT prices higher. Despite this positive outlook, the DOT may decline in the short-term.
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