- Polkadot’s breakout of the descending channel highlights the potential for a 56.86% rise to $11.96.
- Strong short-term liquidations and stable social indicators are driving DOT's bullish momentum.
Polka dot pattern [DOT] has received a lot of attention for breaking out of a long-standing downward channel, suggesting a major change in trend.
At the time of writing, DOT was trading at $7.55, up 21.94% over the past 24 hours. The market capitalization rose to $11.49 billion, and the 24-hour trading volume increased by 102.86% to $1.4 billion.
This breakout brings DOT closer to the key resistance level at $7.71, putting it at a critical juncture.
What does the breakout indicate for DOT?
Polkadot's breakout of the descending channel has sparked optimism about its upward trajectory. DOT faces immediate resistance at $7.71, which will determine whether the rally continues.
If this resistance is broken, the next target would be $11.96, which could provide an upside potential of 56.86%.
From a technical perspective, the recent moving average (MA) cross has strengthened the bullish momentum. Additionally, the relative strength index (RSI) is 76.8, indicating strong buying pressure.
However, traders should keep a close eye on the RSI, as levels above 70 suggest that the asset is approaching overbought conditions and could lead to a short-term decline.
Source: TradingView
Social engagement and control are stable.
Although DOT's breakthrough attracted attention, its social indicators remained moderate. At the time of writing, Polkadot had a social volume of 174 and a social dominance of 0.52%.
These numbers indicate stable engagement and highlight continued community interest without dramatic spikes.
Therefore, this steady participation is likely to support gradual, natural price increases rather than short-term speculative activity.
Source: Santiment
Liquidation data fuels rise
Polkadot's bullish move is largely influenced by liquidation activity. Over $4.99 million of short positions were liquidated in the past 24 hours, while long positions amounted to just $334,600.
This imbalance is causing a short squeeze, forcing bearish traders to close their positions, thereby amplifying DOT's price momentum.
This created further upward pressure and pushed DOT closer to the resistance level.
Source: Coinglass
read polka dots [DOT] Price prediction for 2024-2025
Will DOT be able to hit $11.96?
Polkadot's breakout indicates sustained upward momentum, coupled with strong trading volume, bullish technical setup, and stable social indicators.
If DOT can decisively break through $7.71, it will likely head towards $11.96. Therefore, current indicators suggest that Polkadot's rally is well supported and poised for further upside in the short term.
