Since “October bullish” has really been the month of Bitcoin so far, most of the top altcoins have either consolidated or made larger market-driven gains. Bitcoin posted a gain of almost 15%, while top coins like Cardano and Solana suffered losses.
Polkadot, the number 8 altcoin, seems to have gained some momentum, however. DOT posted an 8% weekly gain and was trading at $ 34.8 at press time, fueling renewed speculation about a new ATH.
With Polkadot comfortably above the $ 33 critical resistance this time around, the question is whether that gain is market driven and how long it can be sustained.
A brief history of DOT’s past protests.
After the flash crash, the DOT resumes new bullish momentum as prices on the daily chart experience a parabolic rebound similar to that of the start of the year. After that, however, the coin corrected and consolidated itself significantly.
It is noteworthy that the DOT price is very sensitive to BTC and has more or less followed the example of the crypto king over the past month. But the good side is that DOT outlasted the wider market when BTC fell.
It is noteworthy that the RSI on the 12-hour chart has finally hit the overbought zone after more than a month. DOT price could head for a 20% rise if it breaks above $ 33 as seen in previous rallies.
If you just look at the pricing structure, the odds seem high for ATH, but what about on-chain data?
What does on-chain data say?
Amid optimistic anticipation for the DOT price and high hopes that the network could announce Polkadot Parachain Auctions during the Sub0 online event next week, DOT’s social media volume soared, with Polkadot the “ Trend “became.
While the DOT’s high social networking index hasn’t had a great correlation with price in the past, positive sentiment is good for the network. However, the network’s growth activity has slowed as it has decreased by more than 50% in the past five days.
Meanwhile, DOT’s Open Interest (OI) on the futures market has reached an ATH of $ 745.75 million since the sell-off in May. This indicates an increase in the number of outstanding contracts from market participants, while at the same time underscoring the fact that new capital is pouring into the DOT market.
So while the likelihood of DOT hitting ATH seems certain, there is still a chance of a trend reversal, as seen earlier, if the broader market consolidates. Overall, DOT seems to be on an interesting turn.
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According to Ambcrypto