Crypto News

Polkadot Eyes Breakout Amid ETF Hype and Rising Liquidity

Polkadot Eyes Breakout Amid ETF Hype and Rising Liquidity

  • Polkadot (DOT) surged during the Q4 2024 rally from lows of around $3.61 to highs of $11.61, but has since struggled to overcome key resistance.
  • Recent Grayscale filings for a spot DOT ETF have renewed trader interest and liquidity, yet DOT remains restricted by a crucial barrier at approximately $5.35.
  • Technical indicators show mixed signalswhile the RSI and MACD remain subdued, rising OBV and CMF suggest mounting bullish momentum.

Polkadots price action has been under pressure amid a broader market downturn, even as the asset experienced a dramatic 200% rally during Q4 2024 that lifted its value from lows around $3.61 to as high as $11.61.

Despite this impressive run, DOT has been unable to break through a key resistance barrier, with bearish flags continuing to hamper its upward momentum throughout the month.

Recent developments, particularly the rounds of Grayscale filings for a spot DOT ETF, have injected fresh optimism into the market. This surge in liquidity and trader attention suggests that a massive price move could be on the horizon. However, the critical question remains: can the bulls muster enough strength to push DOT above the crucial resistance level at $5.35?

Polkadot Future Outlook

Technical charts reveal that DOT is currently testing a descending trend linea strong resistance that has been in place since the start of the year. The assets Relative Strength Index (RSI) has remained consolidated within lower bands, and its MACD is in a negative range.

However, signs of potential divergence in the MACD and an upward move in the RSI indicate that bullish momentum may be building. Additionally, both the On-Balance Volume (OBV) and the Chaikin Money Flow (CMF) have been rising, suggesting increased liquidity and buyer strength.

If the bulls trigger a breakout above the 0.000? level (around $5.39), DOT could challenge further resistance near $6. Such a move would be crucial for maintaining bullish momentum, particularly in a year that is being heralded as the year of ETFs.

On the other hand, if selling pressure resumes and DOT fails to hold the support zone, the token might continue to struggle and even fall further, dampening investor sentiment.

In summary, while Polkadot is currently contending with significant resistance, the renewed liquidity and ETF-driven optimism provide a potential catalyst for a breakout. Investors will be closely watching to see if DOT can secure a decisive move above $5.35, setting the stage for a robust rally toward $6 and beyond.

Read more: https://thenewscrypto.com/polkadot-eyes-breakout-amid-etf-hype-and-rising-liquidity/

Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories