- DOT/USDT pair breaks and rejects $5 resistance.
- Increasing open interest and volume signals bullish sentiment.
Polkadot (DOT) broke through the $5.0 price level but was immediately rejected. This price action on a 4-hour time frame highlights DOT’s struggles at this critical resistance point.
The $2.5-$4 range is a psychological level that serves as both daily and weekly resistance. The DOT/USDT pair is currently rising within a parallel channel.
Source: TradingView
At press time, DOT had gained 10.54% this week. The overall market bias for altcoins remains bullish, despite the rejection of a bearish engulfing candle, signaling a possible reversal.
Descending wedge pattern
Additionally, DOT is consolidating within a falling wedge pattern on the daily time frame, a structure often indicative of a potential bullish reversal.
The DOT/USDT price action appears to have bottomed out and could be preparing for a bullish breakout.
source: TradingView
The next key level to watch is the upper trendline of this descending wedge, with a successful retest likely before prices rally further, especially with altcoin season expected in Q4 2024.
Weekly Support and Stochastic RSI
Polkadot (DOT) weekly support held strong, marking the lowest point for DOT. This support level rejected price declines five times, and after making a higher high, the price retracted towards this support.
The Stochastic RSI for DOT/USDT is currently oversold, suggesting that the gains seen this week could be the start of a larger trend.
Source: TradingView
This anticipated upward movement could be influenced by expected rate cuts, which would benefit altcoins like DOT.
Open interest
At press time, Polkadot (DOT) open interest shows a positive OI-weighted funding rate of 0.0046%.
This indicates bullish sentiment on DOT, as traders with long positions are paying 0.0046% to those with short positions, reflecting confidence that prices will rise.
Source: Coinglass
Polkadot’s open interest between $7.917 and $8.004 totals $35.838 million, while the $5.30 to $5.39 range has an OI of $8.33 million.
Polkadot Statistics
Polkadot’s market cap currently stands at $7.2 billion, with a 24-hour trading volume of $143 million, an increase of 15.13%.
This resulted in a volume-to-market ratio of 1.91%, indicating market stability with minimal price fluctuations. The total and circulating supply of DOT is 1.49 billion, which corresponds to the fully diluted market capitalization of $7.2 billion.
Source: DefiLlama
Read Polkadot (DOT) Price Prediction 2024-2025
As DOT faces a test at the $5.0 level, the overall outlook remains bullish, supported by strong technical patterns, positive market sentiment, and stable market statistics.
With the alternate season on the horizon, DOT is well positioned for potential gains.
