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Polkadot price prediction – Is a move towards $12 on the cards for DOT?

Press Releases Crypto News AMB-Crypto Polkadot price prediction – Is a move towards $12 on the cards for DOT?

Polkadot’s bullish breakout hinted at a 51% upside, with $7.89 and $9.23 emerging as key levels
Market sentiment has improved lately, backed by steady funding rates, rising social volume, and balanced long/short positions

After weeks of bearish behaviour, Polkadot [DOT] gained some momentum on the price charts after breaking out from a falling wedge pattern on its daily chart.

At press time, DOT was trading at $7.42, following a 6.25% hike in 24 hours. As expected, this breakout has sparked optimism among DOT traders, who are closely monitoring key resistance levels. Hence, the question – Will Polkadot maintain its upward momentum and aim for $12 now?

Signs of bullish continuation?

Polkadot’s price action hinted at a clear path for further gains following the daily chart’s falling wedge breakout, with the same projecting a 51% upside potential.

In fact, the same highlighted other bullish patterns too, namely, a pennant flag and a cup and handle formation – Both supporting a move towards $9.23 if the $7.89 resistance is decisively broken. These patterns underlined the growing strength of buyers, positioning DOT for a significant rally on the charts.

However, failure to hold $7.89 may result in consolidation, delaying further upward movement. Therefore, holding above this level is critical for maintaining its bullish trajectory.

Source: TradingView

Binance funding rate reflects growing optimism

At the time of writing, the Binance funding rate for DOT had a reading of 0.01% – Highlighting an optimistic outlook among leveraged traders. It also hinted at increased demand for long positions, in support of the altcoin’s ongoing rally.

However, sharp hikes in funding rates could also mean excessive leverage in the market – Potentially leading to a correction.

Therefore, it is essential for funding rates t

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Author: Erastus Chami

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