DOT soars 12% in 7 days,
But should you start selling?
DOT’s value has surged by more than 12% in the past seven days. But that trend has changed recently, with the token’s value falling by more than 2% in the past 24 hours alone.
The coin trades at $9.70 and has a market capitalization of over $13 billion, making it the 13th largest cryptocurrency.
However, this may only be the shorter part of the story as DOT is testing support levels according to Chart World.
If the coin is able to successfully test, expect a massive bull rally that could boost the coin’s price by 200%.
To determine whether this outcome was possible, AMBCrypto examined Polkadot’s on-chain data.
Investors look less confident
Our analysis shows that DOT’s social volume remained relatively high last week. However, bearish sentiment surrounding the coin is high, as evidenced by the decline in its weighted sentiment.
Despite the decline in bullish sentiment, derivatives market statistics look positive. The token’s funding rate surged, reflecting demand for the token in the derivatives market.
Its open interest has also risen significantly over the past few days.
Looking at the technical indicators, the possibility of DOT regaining upward momentum is worth considering. For example, MACD shows the possibility of a bullish crossover.
On top of that, the coin’s Chaikin Money Flow (CMF) has also increased and moved further upward from neutral levels. These two indicators clearly indicate that the price of DOT may rise soon.
However, the Money Flow Index (MFI) currently appears bearish, indicating that a price drop for the coin cannot be ruled out.
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