Why Polkadot’s $17 price prediction depends on its relationship with Bitcoin

• DOT may rise as excessive as $17 if it breaks by means of the important thing resistance round $10.
• On-chain metrics confirmed that spot consumers had been shopping for DOT aggressively. 

In keeping with analyst Michaël van de Poppe, Polkadot’s [DOT] upswing within the final 24 hours might be the beginning of a run that drives the value to an all-time excessive.

Within the put up, the analyst thought-about DOT’s efficiency versus Tether [USDT] and the one in opposition to the Bitcoin [BTC] pair. van de Poppe talked about that the token shaped greater highs and decrease lows in opposition to USDT.

North is the route

A better excessive and decrease low is taken into account a bullish sign. It reveals that an asset can resist a downward pattern and attain the next worth.

From the chart the analyst shared, DOT had established an uptrend from $8.97. But it surely confronted a vital resistance across the $10 area.

Supply: X

Because it stands, an in depth above the resistance may foreshadow the pattern that set off a rally towards $17. Moreover, if DOT hits $17, a breakout may happen and drive the worth towards an all-time excessive.

Regarding its efficiency in opposition to Bitcoin, AMBCrypto, just like the analyst, noticed that it was at a cycle low. This situation validated the long-term bullish thesis for the token.

Nonetheless, it is usually essential to evaluate DOT utilizing different indicators. The primary indicator we ran to was the Liquidation Ranges accessible on HyblockCapital’s platform.

Liquidation ranges present estimated value factors the place liquidation occasions may happen.  On the plot, there’s additionally a piece for the Cumulative Liquidation Stage Delta (CLLD).

This CLLD tells if actions within the derivatives market are fueling a bullish or bearish bias.

It’s not wanting good for shorts

At press time, AMBCrypto seen that there was no cluster of liquidity between $10.36 and $10.96. Due to this fact, DOT may discover it straightforward to climb towards $11.

Nonetheless, above the aforementioned worth, a lot of liquidation may happen, particularly for high-leverage merchants.

On the CCLD half, the inference we acquired was that shorts with medium to excessive leverage might need their positions worn out. This was as a result of the CLLD had dropped into damaging territory.

Supply: HyblockCapital

The damaging studying steered that shorts had been attempting to catch the dip as DOT’s value barely decreased. However lengthy liquidation ranges had been additionally getting hit from the fast restoration.

Thus, this gives a bullish thesis for the token.

As well as, the Funding Charge was positive, indicating that open lengthy positions had been paying shorts to maintain their positions.

For the uninitiated, funding is a product of the distinction between the spot value and perp value. One factor AMBCrypto seen was that the Funding Charge was changing into decrease as DOT’s value climbed.

Learn Polkadot’s [DOT] Value Prediction 2024-2025

This indicated that spot consumers had been accumulating aggressively, whereas perp sellers had been in disbelief. For the value of the token, this was a bullish sign.

As such, DOT’s northward run may proceed over the approaching weeks.

Supply: Santiment