Polkadot (DOT) has secured a spot in the top 10 cryptocurrencies by market value, thanks to recent price surges. While Solana (SOL) and Avalanche (AVAX) have also shown promising performances, DOT’s situation appears more favorable when considering the latest data.
DOT experienced a significant price increase in the last month of 2024, soaring over 48% in the last 30 days according to CoinMarketCap. At the time of writing, DOT trades at $8.13 with a market value exceeding $10 billion, positioning it as the 11th largest cryptocurrency by market cap. Despite gains in SOL and AVAX, DOT has not yet reached its first resistance level, suggesting a clear path ahead, according to a popular crypto analyst, Tony.
To better understand DOT’s trajectory, experts examined Polkadot’s liquidation map. The token witnessed a substantial increase in liquidations around $9.2, which subsequently led to a price decline. As the value hit $8.6, liquidations intensified, causing further price drops.
For DOT to initiate a bull rally in 2024, it may need to surpass these levels. Despite last month’s price increase, DOT’s recent price movement has shown a downward trend, with a 13% decrease over the past week. However, a positive sign is the reduction in open positions as the price fell, which could indicate a potential trend reversal and price increase.
The high funding rate while DOT’s price declined reflects its popularity in the derivatives market. Several bearish indicators were identified on DOT’s daily chart, such as touching the upper boundary of the Bollinger Bands and the MACD expanding towards a bearish crossover. The declining Relative Strength Index (RSI) suggests a potential continuation of the downward trend in the upcoming days.
In summary, while DOT has shown impressive gains, it faces potential resistance and bearish indicators that could impact its future price action. The cryptocurrency’s performance in the derivatives market and the possibility of a trend reversal will be key factors to watch.