- The price of DOT has fallen 20% in the last 30 days.
- Several technical indicators looked bullish for the token.
Polkadot (DOT) Bears have been controlling the price of the token for several days as its value has been moving sideways. But this may be just the tip of the iceberg. Because when you look at the bigger picture, it looks different.
Considering the latest data, it is likely that DOT will start a bull market.
Polkadot is getting ready to pump.
According to CoinMarketCap, the price of DOT has moved only slightly over the past seven days. However, the situation has worsened with the token value dropping by more than 1.8% in the last 24 hours.
At the time of this writing, DOT has a market capitalization of over $12 billion and is trading at $8.42. However, investors should not be discouraged as a bullish pattern has emerged on the token price chart.
Depending on the Twitter According to renowned cryptocurrency analyst FLASH, the price of Polkadot was trying to break out of a bullish pattern that previously led to a bullish rally.
To be precise, the price of DOT gained bullish momentum in February and November 2023 after breaking similar patterns. If history repeats itself, investors will soon see the price of DOT hit its March highs once again.
Apart from this, DOT has also reached milestones in terms of network activity. AMBCrypto reported A few days ago, the total number of DOT active accounts in the ecosystem exceeded 605,000, reflecting high network usage and adoption.
Is a bull market inevitable?
To determine the likelihood that DOT is actually above the pattern, AMBCrypto looked at on-chain metrics. An analysis of Santiment’s data shows that DOT’s public interest is relatively high.
Whenever the indicator rises, it indicates that an ongoing price trend may continue, which in this case was bearish.
The token’s funding rate also looked weak. In general, prices tend to move in the opposite direction of the funding rate. Since DOT’s funding rate was high, it seems likely that the value of DOT will decline further.
Source: Santiment
Realistic or not, the following is DOT market cap of BTC hatchet
I then planned to check Polkadot’s daily chart to better understand the likelihood that DOT’s price could gain bullish momentum. According to our analysis, DOT’s Relative Strength Index (RSI) remained below the neutral line and was weak.
However, Chaikin Money Flow (CMF) and Money Flow Index (MFI) supported the possibility of DOT breaking out of the bullish pattern. There have been instances where both of these technical indicators have been on the rise in the past few days.
Source: TradingView