contributor
Posted:
- Liquidation and Open Interest underlined the growing bullish momentum as DOT rose 2.04%.
- Consistent development activities and moderate social dominance provided solid foundations for Polkadot’s trajectory.
Polka dot [DOT] witnessed an exciting shift in momentum, with liquidation data reflecting growing confidence among bullish traders.
Over the past 24 hours, $226K in short liquidations, compared to $130K in longs, underlines the increasing pressure on traders betting against DOT.
Consequently, this dynamic is helping to push the price higher, which was trading at $6.04 at the time of writing, a gain of 2.04% at the time of writing.
This increase in liquidations was a strong indicator that bullish sentiment was gaining momentum, which could fuel further upside.
Source: Coinglass
Social dominance shows consistent involvement
Furthermore, Polkadot’s social dominance, at 0.5228% at the time of writing, remained stable but moderate. Although the metric has retreated from recent highs, it still indicated healthy engagement from the crypto community.
However, a significant increase in this metric could act as a catalyst for broader attention and potentially drive DOT to higher levels.
For now, consistent mentions will keep DOT relevant among top projects, but a spike in social buzz will be necessary for a strong breakthrough.
Source: Santiment
Open Interest highlights the rising trading activity
Polkadot’s Open Interest rose 5.09% to $325.34 million, highlighting increasing activity in the derivatives market.
This increase indicated that traders were positioning themselves for potential price swings, which often come with moments of growing market confidence.
Furthermore, the combination of short liquidations and rising open interest adds weight to the bullish momentum story. Therefore, all eyes remain on how DOT performs as it approaches key resistance levels.
Source: Coinglass
Innovation remains stable
Polkadot’s development activity, measured at 37.18, showed a slight cooling from previous highs, but still reflected a strong and active ecosystem.
Although there has been a small decline, the consistent focus on development ensures that Polkadot remains competitive within the blockchain space.
Therefore, maintaining or increasing these levels will be crucial for long-term confidence, as continued innovation often leads to greater adoption and confidence among investors.
Source: Santiment
Read Polkadot [DOT] Price forecast 2024-2025
Will DOT climb higher?
The rise in short liquidations and Open Interest indicates strong upside momentum, while steady social engagement and development activities provide solid fundamental support.
If DOT maintains its current pace and breaks through key resistance levels, it could spark a bigger rally in the coming weeks. For now, the data indicates a high probability of reaching higher levels.
