- Polkadot’s breakout and technical indicators pointed to a potential rally towards $24
- Rising development activity and social dominance highlighted growing market interest in the altcoin
Polkadot [DOT] has grabbed market attention with its recent price action, following a notable breakout from a descending channel pattern. With a price of $7.72 following gains of 6.54% at press time, the altcoin seemed to be demonstrating some promising momentum on the charts.
Needless to say, the ongoing activity and metrics surrounding Polkadot have sparked curiosity about its potential direction in early 2025.
DOT breaks key resistance with a strong setup
Polkadot’s descending channel breakout has set the stage for a potential rally, with the token reclaiming its bullish structure and forming a higher high.
The immediate resistance at $11.77 remains a key level to watch, while a successful breach could pave the way towards the $24-mark. These levels alluded to an over 100% potential upside from its press time price, underscoring DOT’s promising trajectory.
Additionally, the consolidation following the breakout has been strong, providing traders with confidence in its long-term strength. Simply put, Polkadot’s technical outlook continues to align with market expectations for sustained growth.
Source: TradingView
Indicators suggest room for further growth
At press time, Polkadot’s technical indicators supported its bullish momentum, with several metrics highlighting the potential for further gains. The weekly MA cross between the 9-day ($7.74) and 21-day ($5.78) moving averages highlighted a confirmed bullish trend too.
Moreover, the RSI at 56.26 indicated that there might still be room for price appreciation, before entering overbought territory. Also, the clear alignment of these indicators with the altcoin’s price action reinforced the view that Polkadot may be positioned for sustained upward movement.
Source: TradingView
Social dominance rises with market interest
Polkadot’s social dominance climbed from 0.432% to 0.551% – A sign of greater attention from the community and investors. Such a hike in market interest often correlates with stronger price performance, as more participants engage with the ecosystem.
Furthermore, rising social activity can be interpreted as a sign of growing confidence in Polkadot’s potential, adding another layer of support to its bullish narrative.
Source: Santiment
Liquidations reflect bullish sentiment
Polkadot’s total liquidations also highlighted the active trading environment surrounding the token. At $7.76, $37,160 in shorts were liquidated compared to $26,610 in longs – A sign that bullish traders have been gaining the upper hand.
This disparity underscored the confidence in Polkadot’s price trajectory and a supportive market environment for further gains.
Source: Coinglass
DOT development activity signals network strength
Finally, Polkadot’s development activity bounced back to 68.79 after hitting a recent low, demonstrating its ecosystem’s commitment to growth. This steady uptick highlighted its ongoing innovation and expansion – Crucial for long-term sustainability.
Here, it’s worth noting that a hike in development activity reassures investors about the blockchain’s resilience and potential for further adoption.
Source: Santiment
Read Polkadot [DOT] Price Prediction 2024-2025
Polkadot’s descending channel breakout, bullish indicators, and rising development activity pointed to strong momentum heading into 2025.
Therefore, it is highly likely that DOT will maintain this upward trajectory and deliver significant gains. However, potential market volatility may temporarily challenge its ascent.
