Polkadot [DOT] has shown a lack of momentum since the start of the month, with prices remaining stagnant in a consolidation phase. This has been evident in the minimal price movements, with a meager 0.97% increase over the month and a mere 1.57% gain in the span of 24 hours.
Despite these movements, the future trajectory of DOT hinges on a significant breakthrough from the various patterns that have emerged.
Is a substantial uptrend on the horizon for DOT?
Currently, DOT is trading within a symmetrical triangle formation, with price fluctuations confined within a specific range. While historical trends have shown upward movements from similar positions, DOT has instead consolidated near the lower support of the triangle since October 2nd.
A breakout from this consolidation phase could potentially propel DOT towards two key price levels – first at $4.554 and then towards $4.982. Failing a breakout, DOT may retreat towards its September low of $3.818.
Sentiments across the market appear to be predominantly bullish, indicating a possible upward trajectory for DOT in the near future. Insights from CryptoCrypto further supported the notion of a sustained rise for DOT.
Buyers show interest, yet DOT’s rally hinges on certain conditions
The Accumulation and Distribution (AD) indicator has been trending upwards, signaling an ongoing accumulation phase. This aligns with the earlier identified consolidation phase on the chart.
For a bullish breakout, the AD line must breach the upper resistance level of the triangle pattern. Such a move could trigger increased buying interest, potentially driving up the price of DOT.
Additionally, the Relative Strength Index (RSI) has been climbing higher, indicating a potential extension of the uptrend for DOT. This suggests the price might break through the upper boundaries of the consolidation range.
Bullish sentiment continues to build around DOT
Open interest in DOT, which hit a monthly low on October 6th, has been steadily gaining traction, as illustrated on Coinglass charts.
This rise could be seen as a signal of growing bullish activity in the market, reinforcing the prevailing positive sentiment.
As of the latest data, Open interest saw a slight decline of 1.03%, totaling $209.93 million. Should this upward trend persist, DOT might be on track to achieve new highs and shift into positive territory.
Considering these factors, it is likely that DOT will continue its upward movement, potentially surpassing its target prices.