Polkdot [DOT]: Bulls centered on $8 – Is it even attainable?

Disclaimer: The info offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion

• DOT was strongly bullish on the every day worth charts on the time of writing.
• DOT’s Funding Rate was constructive, and sentiment improved.

Polkadot [DOT] bulls had been upbeat concerning the $8 worth after overcoming a sizzling promote stress zone. So far, DOT has rallied by 70%, constructing on the spectacular upswing in January. But most significantly, latest Bitcoin’s [BTC] retest of $25K boosted DOT bulls to beat a vital promote stress zone. 

Read Polkadot’s [DOT] Price Prediction 2023-24

Will the brand new help zone maintain?

DOT confronted vital challenges regardless of the rally witnessed previously a number of weeks. At the top of January, it went into an prolonged consolidation section and oscillated between $6.103 and $6.614. It broke above the vary on February 3 however hit the availability zone at $7.000, prompting it to interrupt beneath the ascending line. 

The worth rejection at $7.000 set DOT right into a correction and misplaced about 14% of its worth. But the plunge was checked by the earlier $6.103 help degree. After that, the restoration inflicted by bulls cleared the impediment at $7.000 and flipped the resistance into help. 

At the time of writing, the help was confirmed, clearing bulls to focus on greater resistance ranges. Long-term bulls may goal $8 in the event that they cleared one other hurdle at $7.751.

A break beneath the $7.000 resistance-turned-support will invalidate the bullish thesis. Such a downswing will tip bears to search for shorting alternatives at $6.614 or $6.103. An extraordinarily bearish situation may see DOT hit the $5.000 degree. 

How a lot are 1,10,100 DOTs price right now? 

DOT noticed a constructive Funding Rate and improved traders’ outlook

Source: Santiment

DOT noticed an improved traders’ outlook, as proven by retreating weighted sentiment.

The sentiment moved from the detrimental territory and was barely above the impartial degree.

In addition, DOT’s demand within the derivatives market was spectacular, as highlighted by the constructive Funding Rate. Collectively, these constructive metrics counsel a bullish sentiment that would tip bulls to focus on $8. 

Besides, about $450M price of short-positions was liquidated previously 24 hours, in accordance to Coinalyze. It additional reinforces the potential of bulls shifting towards September’s resistance degree of $8.027.