- 1 The DOT price witnessed a noteworthy rebound of over 15% this week.
- 2 It has retained the $6 mark decisively and is eyeing a breakout.
Polkadot (DOT) was developed by one of the Ethereum co-founders and introduced the idea of blockchain composability to the masses well before it became popular last year.
For the past two months, the Polkadot price witnessed a steady decline and flipped from its upward trajectory of $12. Afterward, it engaged in a correction phase and lost over 40% gains in the last three months.
Nonetheless, it retested its demand zone at around $5 last week and revealed a pullback. From the bottom zone, the token has accumulated and conveyed signs of reversal on the charts.
Additionally, a descending triangle pattern was exhibited. The token is on the verge of falling through its downward sloping trendline hurdle of $6.50, which, if breached, the token may sprint toward the $8 mark, followed by the $10 mark this month.
DOT Price at Press Time
At press time, DOT was trading at $6.36 with an intraday surge of 0.89%, reflecting a pullback on the chart. It has a monthly return ratio of -9.20% and 16.30% yearly, reflecting short-term consolidation.
The pair of DOT/BTC is at 0.000102 BTC, and the market cap is $9.17 Billion. Analysts are neutral and suggest that DOT may breach a trendline and may reach the mark of $8 soon.
Polkadot Formed a Descending Triangle: Breakout is on the Horizon
For the past few weeks, the token persisted in forming the lower low swings and made a descending triangle pattern. However, the token has completed the correction phase and could break out.
Source: TradingView
The price action reflects a pullback and as it retained the 50-day EMA mark in the last few trading sessions. Meanwhile, if the token fails to split the trendline barrier, it may dip toward the $6 mark.
The Relative Strength Index (RSI) curve revealed a positive crossover and spiked beyond the midline region, highlighting a bullish view for the upcoming sessions.
Price Volatility and Weighted Sentiment
Price volatility data revealed a steady move and witnessed relatively nominal fluctuations. Amidst the price rise, the value was noted at 0.05, declining over 9%.
Source: Santiment
Weighted sentiment data witnessed a massive spike, soared to 2.237, conveyed a spike of over 78% in the last hours, reflecting a positive outlook.
@CryptoFaibik, in his post, mentioned that DOT formed a falling wedge pattern.
$DOT #Polkadot Seems like bottomed out & Ready to Fly.. pic.twitter.com/UIQkfTrj2p
— Captain Faibik (@CryptoFaibik) July 2, 2024
Source: X
Sharpe Ratio Value Witnessed a Spike
Source: Messari
In the last few trading sessions, the Sharpe ratio value witnessed a massive recovery and spiked over 40% this week, revealing a positive outlook.
Futures OI Data Insights
Source: Coinglass
Following the price rise, the open interest data revealed a notable increase of over 1.89% to $259.57 Million in the last 24 hours.
Per the Fibonacci retracement levels, DOT settled above the 23.6% zone and is heading toward the 38.2% zone. Nevertheless, the token has displayed a positive move and is ready for a breakout shortly.
The immediate support levels for the Polkadot token are $5.40 and $5, whereas the key upside hurdle is around $6.30, followed by $7.30
Has Polkadot (DOT) Price Bottomed Out?
The Polkadot token price has retested the 50-day EMA mark and is trying to strike the downward trendline hurdle of $6.50. Once the $6.5 level is breached, a sharp move to the $8 mark may be seen.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
