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- DOT’s high liquidity suggests that the token could rise above $7.59
- The project has approved a new upgrade that could fuel a long-term uptrend
Polkadot [DOT] The price in the last 90 days has been far from reassuring. This is because the token lost 23.60% of its value during the mentioned period.
However, according to AMBCrypto analysis, DOT holders may soon have reason to celebrate. One reason for these expectations is the filter heatmap.
Next stop up
For context, liquidation occurs when a trader’s position is closed due to price fluctuations, insufficient margin balance, or both. However, with a filter heat map, traders can identify areas of high liquidity.
This can help predict potential entry and exit points. At press time, using Hyblock data, there was a liquidity concentration of between $7.59 and $7.70. This area is known as the magnetic zone, and the Polkadot price can move there direction.
If DOT reaches $7.70 and buying pressure increases, the price may continue to move higher. However, if the specified liquidation levels come with the sell side of the order book, the price may reverse itself.
According to the assessment of analyst Michael van de Poppe On the tenth, DOT has been undervalued. He believes that Polkadot’s scalability and security offerings are the main reasons why the token is trading at a discount. he wrote,
“DOT is one of the most undervalued blockchains. They have launched their JAM upgrade and the project is focusing on RWA. Why? – a point Focuses on scalability and security.”
Polkadot community “JAMs” on the beat
Here, JAM stands for Join-Accumulation Machine. A few days ago, the Polkadot community voted on whether to implement the upgrade or not.
However, it did not take long for the community to catch on I unanimously agree To publication. With the JAM upgrade, the project can replace the relay chain, and interaction with other blockchains may improve.
Additionally, Polkadot’s ties to creating an ecosystem of real-world assets (RWAs) could boost its High DOT. However, in the long term, this could push the price towards $20 on the charts.
Looking at its short-term potential again, according to Santiment, the Relative Strength Index (RSI) registered a reading of 48.43. Previously, the RSI was at 29.97 – a sign that the token was oversold.
Source: Santiment
Hence, its recent bounce from the lows Proposal That DOT’s momentum was exiting its bearish phase. If the altcoin continues and crosses the neutral zone of 50.00, the bullish prediction may be validated, and the price may reach $7.70.
AMBCrypto also looked at one-day volatility. At the time of writing, the scale has begun to expand, indicating that price fluctuations may be significant.
is reading Polkadot [DOT] Price prediction 2024-2025
If increased volatility comes with said buying pressure, a DOT rally could be validated. However, if bears come into the picture, expectations will be neutralized.
