crypto-news-flash.com
- Polkadot (DOT) has been predicted to surge to $15 in its next rally once bears completely exit the market.
- However, the bullish potential is reported to be lacking validation as The Moving Average Convergence Divergence (MACD) reads -0.01.
Polkadot’s (DOT) journey to becoming the twelfth largest crypto by market cap was not a smooth ride as the asset sailed through multiple “market storms” and hurdles exposing its resilience. The asset is currently trading at $7 after surging by 1.7% in the last 24 hours. Prior to that, its earlier attempt to hit this price point was strongly resisted by bears, pushing the price back to $6.79.
According to market data, Polkadot earlier experienced a market correction that caused its Year-Year-To-Date (YTD) performance to fall by 20%. In the past few days, bulls have slowly crawled back to seizing control over the market, triggering a 9% surge in the last seven days with a market cap of $9.1 billion.
One analyst who has always remained bullish on Polkadot is Michaël van de Poppe. Having admitted the dominant control of bears in the recent cycles, de Poppe believes that the approximately 30% correction could be the end of the month-long correction.
As captured in his statement, the current level could offer a rare opportunity for buyers to accumulate the asset. Speaking to his X followers, the analyst predicted that Polkadot could start an upward trend that would not last until it hits $15.
Request 01 – $DOT. Great weekly candle across the board, including $DOT. Had a 30-40% correction, which are massive opportunities within a bull market. I think we’re ready for the next upward impulse move, perhaps $15 for Polkadot.
A Review of the Bullish Potential of Polkadot (DOT)
The authenticity of this prediction was reviewed by a team of analysts using the funding rate of the asset. It is noteworthy that a positive funding rate usually means users with long positions pay a funding fee to users with short positions. On the other hand, a negative funding rate implies that users with short positions pay funding fees to users with long positions.
The funding rate of Polkadot was observed to be 0.01% at press time. This is a positive funding rate which shows that sellers in derivatives are in disbelief as the price moves higher. This indicates that the asset is in huge demand, and is being purchased aggressively. According to the analysts, the price could surge higher when the momentum stays positive.
Another observation is that bears could still seize control at some point as the price has been rejected multiple times at $7.49. The Moving Average Convergence Divergence (MACD) is currently around -0.01, indicating that the bears are still around.
It is reported that the bears would first have to exit for the bullish potential to get validated. This could change the short-term moving average (blue) to the long-term one (orange). Interestingly, the Bollinger Bands (BB) indicates that the volatility of Polkadot has increased.
A look at the Awesome Oscillator (AO) shows a negative reading, while it also targets the “histogram midpoint with green bars”. The negative reading signals a downward trend. However, there could be an upward surge when oscillation changes. Polkadot’s Social Dominance has also fallen to 0.3432. Interestingly, this could still bounce back as witnessed in its historical patterns.