Possible breakouts for DOT
With the market starting to rise at the beginning of October, it looks like the bulls have been awakening since late September. Both Bitcoin and ETH saw gains of nearly 13% in just 1.5 days and market capitalization rose more than 10%. While most of the top altcoins are going up in the new trend, the altcoin DOT also posted a weekly return of 6.87% in 8th place.
DOT 4-Hour Price Chart | Source: Tradingview
While the DOT rally is more market-driven and is happening in conjunction with space, there are clear signs that a breakout could take place.
Price action and indicators newspaper switch to increase
The DOT price on the daily chart is recovering parabolically, similar to the beginning of the year. At the time of this writing, DOT is testing the long-term support of $ 32.3 and a reversal of that level will confirm further upward momentum. Additionally, the Relative Strength Index (RSI) on the daily chart is rising almost vertically, indicating high inflows of funds.
In fact, the futures and perpetuals markets also start to turn green as prices rise. In particular, according to information from Coinlyze, Open interest rose 15% in just 24 hours as $ 1.3 million shorts were liquidated in the futures and perpetuals market.
Additionally, the percentage of whale-held DOT stablecoin supply of over $ 5 million, which was inherently in a downtrend, steadily increased with the price development.
Increase network performance
In one interview Recently, Gavin Wood indicated that Parachains are technically operational and is now seriously working on the platform’s governance process to get this established. That makes the community expect more.
Another reason why the DOT price remains positive is, in particular, that the staking ratio was kept constant at around 63.7%. In addition, development activity is steadily increasing as the number of contributors has remained constant for over a year.
DOT price (green), development activity (blue) and number of people contributing to development (pink) | The source: Sanbase
While the futures market and the indicators seem to be turning positive, the DOT market lacks a high trading volume. Previous rallies have been supported by this indicator and if history repeats itself this could confirm another strong move higher.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
At home at home
According to AMBCrypto