Price Polkadot (DOT) can respond to a positive shift in investor sentiment despite negative price dynamics
Polkadot Odds (DOT) on a bullish breakout from the descending channel are quite high, given the signals of some onchain metrics.
to find out how to buy Polkadot (DOT), the editors of BeInCrypto analyzed the popular offers and selected the top convenient options.
Polkadot mounts are bullish
The price of Polkadot can be affected by a change in the sentiment of hodlers DOT. It points to it indicator Chaikina (Chaikin Money Flow, CMF). This one onchain metric measures the movement of cash flows into and out of an asset. Traders use it to gauge the direction and strength of a trend.
A negative value indicates that the initiative is on the side of sellers, and liquidity is leaving the market. In the case of DOT the indicator entered the positive zone after almost a month. This means that investors are showing renewed interest in Polkadot and buyers are putting more pressure on the price. An influx of money into an asset is often associated with an increase in demand and a potential increase in price.
Besides CMF, financing rate DOT is also in a small plus. This mechanism provides a balance between long and short positions in the perpetual market. futures contracts. Positive values indicate the dominance of long contracts and mean that the contract price exceeds the spot price. This means that more traders are buying the coin with the expectation of selling it at a higher price.
The positive funding rate and CMF together indicate that long contracts currently dominate the market. This could create sustained bullish momentum for the asset, pushing more investors into long positions.
DOT Outlook: The market is poised to support a breakout
The price of Polkadot is currently moving within downstream channel, trying to make a bullish breakout out of it every few days. This pattern is characterized by a series of falling highs and falling lows. Generally, it indicates a bearish trend when the price moves down between parallel lines.
A breakout of this pattern could send the altcoin up another 6%, pushing it above the $6.3 mark. As noted above, the market also supports such an outcome.
However, if the breakout fails, the price may be stuck within this pattern. A drop below $5.7 could send DOT to $5.2 or $5.0, which would invalidate the bullish scenario.
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