Polkadot’s recent surge in price, alongside a significant increase in daily trading volume, has caught the attention of traders and investors alike. The cryptocurrency is currently trading at $5.07, with the potential to reclaim the critical $5.30 level. A sustained close above this level could pave the way for a move back to $8, and possibly even $11.67.
The MACD indicator has turned bullish, with the MACD line crossing over the signal line and elevated histogram bars indicating growing upside momentum. This positive momentum, coupled with a breakout from a prolonged base accumulation zone, suggests that the bulls are in control.
However, the $5.30 level is proving to be a crucial battleground for Polkadot. A rejection at this level could lead to a course correction back to $4.70 or even a retest of the $4.30-$4.00 accumulation range. On the other hand, a successful flip of the $5.30 zone could lead to further upside potential.
The Liquidation Map reveals that there are large long leverage positions between $4.54 and $5.09, indicating that traders are optimistic about Polkadot’s price movement. The imbalance of long positions over short positions, with leverage ratios of 25x and 50x, suggests that traders are entering the market aggressively in anticipation of a bullish trend.
A breakthrough above $5.30 could trigger short liquidations and push the price towards the $5.50 – $5.75 range. Conversely, a drop below $5.09 could lead to liquidation of high-leverage long positions and a potential decline towards $4.80 or lower.
Despite the positive technical setup and bullish sentiment, Polkadot’s Active Addresses have declined to 62.1K, indicating subdued network activity. This could weaken on-chain support for a breakout, suggesting that investors should remain cautious.
In conclusion, Polkadot’s price action in the coming days will be crucial in determining its short-term trajectory. Traders should closely monitor the $5.30 level and be prepared for potential volatility in either direction.