Polkadot surprises traders with latest hike – Can DOT hit $7.5 next?

  • Bearish sentiment around Polkadot dropped in the last few days.
  • Most market indicators and metrics looked bullish on DOT.

The crypto market has been tumbling in the last few days as most cryptos fell. However, Polkadot [DOT] had other plans, as its daily chart remained green. Does this mean investors should expect the token’s price to rise further in the coming days? 

Polkadot takes a different route 

The recent market drop pushed Bitcoin’s price down by 10% over the last week. Not only BTC, but Ethereum also had a similar fate, as it dropped by nearly 2% in the last 24 hours.

However, DOT planned to move the other way around. According to CoinMarketCap, Polkadot was up by more than 5% in the last 24 hours. At the time of writing, it was trading at $6.85 with a market capitalization of over $9.8 billion, making it the 14th largest crypto.

It was also interesting to note that while DOT’s price gained bullish momentum, the blockchain’s network activity also increased. As per AMBCrypto’s look at Artemis’ data, DOT’s daily active addresses have shot up since the 28th of April.

Thanks to that, the blockchain’s daily transactions also increased. Things in terms of captured value also looked optimistic as both fees and revenue went up.

Polkadot's network activity increased

Source: Artemis

Will Polkadot’s bull rally last?

Since DOT had already begun a bull rally, AMBCrypto then planned to have a closer look at the token’s metrics to find out whether this trend would last longer.

As per our analysis of Santiment’s data, DOT’s weighted sentiment improved, meaning that bearish sentiment around it decreased over the last few days. Its social volume spiked, reflecting its popularity in the crypto space. 

Polkadot's social volume increasedPolkadot's social volume increased

Source: Santiment

Apart from this, Polkadot’s derivatives metrics also looked optimistic. Its open interest increased along with its price. Whenever the metric moves up, it indicates the chances of the current price trend, which on this occasion was bullish, continuing further.

Moreover, DOT’s funding rate was low. Generally, prices tend to move in a different direction than funding rates, hinting at a further price rise in the coming days. 

DOT's funding rate droppedDOT's funding rate dropped

Source: Santiment

A few technical indicators also looked bullish. For example, the MACD displayed a bullish crossover.

The Chaikin Money Flow (CMF) also registered an uptick, indicating a continued price increase. However, the Money Flow Index (MFI) turned bearish as it went down slightly. 

DOTUSDT 2024 05 02 12 23 12DOTUSDT 2024 05 02 12 23 12

Source: TradingView

Read Polkadot’s [DOT] Price Prediction 2024-25

As per our analysis of Hyblock Capital’s data, it will be crucial for DOT to go above $6.9 in order to sustain its rally. This seemed to be the case, as liquidation would rise shapely at that level, which might result in a price correction.

A successful breakout above that level could allow DOT to touch $7.5 in the coming weeks.

Screenshot 2024 05 02 at 12.25.19 PMScreenshot 2024 05 02 at 12.25.19 PM

Source: Hyblock Capital

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