Polkadot (DOT) Targets $9 Amid Bullish Market Trend

Polkadot’s price is expected to continue its sustained recovery after noting a correction in the past two months.

This is supported by investors who have shown a bullish attitude towards the asset.

At the time of writing, Polkadot’s price is observing the impact of DOT holders changing their behavior. Evidence of the same can be seen from the open interest in the futures market.

Open interest (OI) refers to the total number of active derivative contracts (such as futures or options) that have not yet been settled. In the case of DOT, this OI has increased by more than $63 million, taking the total from $221 million to $284 million in just three days.

While rising open interest does not necessarily mean a bullish trend, the positive funding rate indicates that long contracts are more dominant than short contracts.  

Furthermore, a surge in bullish sentiment was also observed in the Moving Average Convergence Divergence (MACD). MACD is a trend-following momentum indicator that shows the relationship between two moving averages of an asset’s price, helping to identify potential buy and sell signals.

This month, the indicator has avoided a bearish crossover twice, with the green bars on the histogram confirming that bullish sentiment has prevailed. This could also reflect on the price of Polkadot, driving it higher.

DOT Price Prediction: Another Rise Following Monthly Highs

Polkadot is priced at $7.50 and is close to breaking out of the $8.0 resistance level. Turning this resistance level into support could push the price higher further, as it previously served as support before the last leg of gains.

This could lead to a rise in price to $9.0, marking a 22% gain for the cryptocurrency.

However, if the breakout fails, the price of Polkadot could fall back to $6.8 and could face consolidation. A break below this level would take DOT down to $6.3, marking a 14% drop, invalidating the bullish thesis.

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