Polkadot [DOT] price surge predicted to reach 27%

Anticipated 27% Surge in Polkadot [DOT] Price Movement

In the recent period, there has been a bullish shift in DOT’s price movement, with the cryptocurrency experiencing a 12.13% increase due to heightened buying activity. The current trading value sits at $5.13, with minimal fluctuations in the last 24 hours.

Analysis from CryptoCrypto suggests that the recent dip in price might be a necessary precursor to a significant rally, given the largely intact bullish structure.

Temporary Correction Before Upward Movement

Presently, Polkadot [DOT] is trading within an ascending triangle pattern, with a converging support line meeting a horizontal resistance line.

Typically, this pattern precedes a major surge when the upper resistance level at $5.293 is breached. However, based on the current market dynamics, DOT may witness a brief decline towards the $5.085 support level before initiating a significant rally in the coming days.

This descent towards the lower support level is seen as a phase of momentum building for DOT before the anticipated breakout. Upon completion, the asset is projected to surge by 27.14% to reach $6.47, as indicated in the charts.

Ongoing Accumulation Phase

The Bull Bear Power (BBP) indicator, signaling the dominant market segment between buyers and sellers, currently shows buyer control.

The histogram’s color and position provide insight, with green above the zero line indicating bullish dominance, while red below zero suggests heightened seller activity.

At the time of observation, the BBP registered a value of 0.010, confirming buyer supremacy.

Analysis of the Accumulation/Distribution (A/D) metric revealed a consistent figure of 54.83 million, reflective of ongoing buying activity at lower price levels. This suggests an accumulation phase that could lead to a price rally once completed.

Positive Sentiment Among Derivative Traders

Derivative traders are increasingly leaning towards long positions, evident from the positive funding rate and Open Interest-weighted (OI-weighted) funding rate.

Currently, the funding rate stands at 0.0050%, indicating buyers are willing to pay a premium to uphold their positions, showcasing strong conviction in the asset.

Further validation of this bullish sentiment comes from the OI-weighted funding rate, which has turned positive and is on an upward trend. This metric, incorporating Open Interest (OI) into the funding rate computation, signifies buyer dominance when positive, like in the case of DOT at 0.0021%.