- Polkadot (DOT) shows signs of a potential bullish run, with technical indicators and rising long positions suggesting a price target of $4.25.
- Accumulation and favorable liquidity zones further support this optimistic outlook for DOT’s recovery.
Polkadot (DOT) is starting to show signs of a potential recovery, with several indicators suggesting a bullish turn may be on the horizon. As the cryptocurrency market stabilizes, DOT’s recent price action and technical indicators provide a hopeful outlook for the final quarter of 2024.
Technical Indicators Signal Potential Bullish Momentum
One of the key technical indicators, the Moving Average Convergence Divergence (MACD), is showing higher lows, and the moving averages are beginning to flatten. This pattern suggests that Polkadot may be preparing for a bullish run. Additionally, the Chaikin Money Flow (CMF) indicator reveals a divergence: while DOT’s price has been declining, the CMF is rising, indicating accumulation and potential buying pressure.
Price Action and Support Levels
Polkadot’s price action has shown resilience by not breaking below the low it reached in October 2023, which preceded a significant bull run. The price has been trending downward since then, but the August 5th market crash low has not been breached, indicating accumulation might be taking place.
A potential double bottom at $3.56 could indicate a reversal is near. Analysts predict that DOT may need to test this level before making a decisive move to the upside.
Long Positions and Bullish Sentiment
The percentage of long positions on Polkadot is rising, currently standing at 73%. This high percentage indicates growing bullish sentiment among whales, retail investors, and institutions, who are likely accumulating DOT in anticipation of a price increase. The whale vs. retail delta, currently at 46%, also shows a bullish trend, reinforcing the positive outlook for DOT.
Liquidity Zones and Price Targets
Polkadot’s price movement is largely influenced by liquidity zones, with DOT tending to move from areas of low liquidity to those with higher liquidity. Currently, liquidity zones that suggest higher prices are closer to DOT’s current price action. This indicates that DOT is more likely to move upward, with the next significant target being the $4.25 level, which holds $117,000 in liquidations. In contrast, the lower liquidity zone at $4.08 has $189,700 in liquidations, making an upward move the more probable scenario.
Polkadot has already picked up liquidity below its current price, so it is poised to aim for higher liquidity zones above, potentially driving its price higher.
Polkadot appears to be gearing up for a potential bullish phase, supported by positive technical indicators, resilient price action, and rising bullish sentiment among investors. As DOT aims for the $4.25 target, its movement will be closely watched by the cryptocurrency community. If the current trends continue, Polkadot could see significant gains in the coming months.
