- High liquidity in DOT suggests that the token could rise above $7.59.
- The project has approved new upgrades that could spur a long-term uptrend.
Polka dots [DOT] The price over the past 90 days has been far from reassuring, as the token lost 23.60% of its value within the aforementioned period.
However, DOT holders may soon have reason to celebrate, according to analysis by AMBCrypto. One of the reasons for this prediction is the liquidation heatmap.
The next step is upwards
For context, a liquidation occurs when a trader’s position is closed due to price fluctuations, insufficient margin balances, or both. However, a liquidation heatmap can help traders identify areas of high liquidity.
This can help predict entry and exit points. At the time of writing, Hyblock data showed that liquidity was concentrated between $7.59 and $7.70. This area is known as the magnetic zone, and Polkadot price is likely to move in that direction.
If DOT reaches $7.70 and buying pressure picks up, the price could move higher. However, if liquidation levels are identified on the sell side of the order book, the price could reverse.
According to analyst Michael van de Poppe: Regarding X, DOT is undervalued. He believes Polkadot’s scalability and security offerings are the main reasons the token is trading at a discount. He writes:
“DOT is one of the more underrated blockchains. They released the JAM upgrade and the project is focused on RWA. Why? – Dot We focus on scalability and security.”
The Polkadot community “jams” to the rhythm
Here, JAM stands for Join-Accumulate Machine. A few days ago, the Polkadot community voted on whether to implement the upgrade.
But the community unanimously agree On deployment: JAM upgrades could allow projects to replace relay chains and improve interactions with other blockchains.
Additionally, Polkadot’s connection to building an ecosystem for Real World Assets (RWA) could help boost DOT’s price, though this is a long-term one that could see the price approach $20 on the charts.
Taking another look at the short-term potential, according to Santiment, the Relative Strength Index (RSI) is at 48.43. The previous RSI was 29.97, indicating that the token is oversold.
Source: Santiment
Hence the rebound from the recent lows was suggested DOT is emerging from a bearish market and if this momentum continues and the altcoin rises above the neutrality area of 50.00, the bullish predictions will be vindicated and the price can reach $7.70.
AMBCrypto also looked at intraday volatility, and at the time of writing, this metric is starting to widen, suggesting larger price movements are possible.
Polka dot [DOT] Price forecast 2024-2025
If the increase in volatility is accompanied by the aforementioned buying pressure, a price hike for DOT may be justified. However, if the bears emerge, the forecast will be neutralized.
