Polkadot [DOT] has witnessed a significant upward trend in the past month, with its current trading price standing at $4.50.
Over the last week, DOT has shown a 7.07% increase, while on a monthly scale, the surge has been 7.67%.
This rise in price has not only attracted traders’ attention but has also led to a notable uptick in trading volume, which surged by 23.10% to $132.3 million in the last 24 hours.
Starting from a monthly low of $3.82, Polkadot has managed to maintain an upward trajectory, positioning itself to break out from a descending trendline.
Market sentiment is showing signs of optimism, backed by data from Market Prophit, with DOT’s crowd sentiment at a positive 0.167 and a Buzz score of 1.25.
Interpreting Polkadot’s Market Indicators
At present, DOT is witnessing an increase in investor favorability, reflected in heightened buying activity.
The Relative Strength Index for Polkadot has climbed to 56, indicating higher buying pressure compared to selling after a recent low of 43.6. This implies a positive investor sentiment towards DOT.
Supporting this observation is a positive Chaikin Money Flow (CMF) of 0.27, highlighting an increased demand for Polkadot.
Delving deeper, the DyDx Exchange Funding Rate for Polkadot has remained positive over the past week, indicating that long position holders are paying short position holders.
A premium being paid to maintain positions signifies confidence in the altcoin’s market direction.
Furthermore, DOT’s OI Weighted Funding Rate has sustained positivity for the last five days, reinforcing the higher demand for long positions over short positions.
Moreover, Polkadot’s Open Interest in USD per Exchange has displayed a consistent uptrend in the past week, rising from $39.5 million to $46.16 million currently, indicating fresh positions being opened alongside holding existing ones.
In essence, Polkadot is amid a robust uptrend fueled by increasing investor favorability. Should this positive market sentiment persist, Polkadot’s daily candlestick is likely to close above the descending trendline, paving the way for a potential move towards the $5.03 resistance level.