Polkadot Price: Will DOT Surpass $20 As Transactions Soar To New Highs?

Polkadot price finally demonstrated proof of life in November after months of being off the limelight. Low activity relative to other top blockchains had Polkadot sidelined.

An outcome that may have dented sentiment. However, the latest data signals big changes for the network.

Polkadot benefited from renewed market hype in November as liquidity rotation intensified. That effect is spilling over into December.

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A recent TokenTerminal report revealed that Polkadot monthly transactions reached a new high.

A spike in volume accompanied the surge in Polkadot transactions in November.

For example, the highest single-day volume recorded for the network in the last 4 weeks was 3.71 billion on November 25, according to DeFiLlama.

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A Double Top for Polkadot Price or Sustained Momentum?

The surge in Polkadot transaction activity and on-chain volume has been great for the DOT cryptocurrency.

It aided the return of investor confidence. Consequently, there has been a bullish outcome on the price.

DOT managed to break above the $10 barrier towards the end of November for the first time since March.

The cryptocurrency was off to a bullish start this month with the price attempting to soar above November highs.

The Polkadot native crypto surged as high as $10.39 in the last 24 hours, in a move that appeared to form a double top.

The $10 range also generated some resistance, indicating that there was some profit-taking.

DOT was overbought at press time which may explain its struggle to stick above $10. However, the hype around Polkadot and its surging transactions may generate more investor confidence.

DOT’s next major resistance levels are $11.8 and $23. These are the cryptocurrency’s next major resistance levels. A rally to the $23 range means the cryptocurrency could soar by as much as 139%.

If DOT secures strong enough momentum to push to its previous ATH, the cryptocurrency could rally by over 450%.

Polkadot Open Interest Soars to 12-month High

DOT’s latest rally was characterized by strong demand from both the spot and derivatives market segments. The latter remained strong and pushed into a new 2024 high in the last 24 hours.

DOT open interest peaked at $530.90 Million on November 3. For context, OI was less than $200 Million at the start of September, after which it went parabolic. This performance reflected the return of strong demand in the cryptocurrency.

Polkadot price still has a long way to go in terms of derivatives demand to reach its previous highs. For example, open interest surged above $900 Million in 2021.

Nevertheless, the cryptocurrency could be on track to reach those heights if the market maintains its current trajectory.

Meanwhile, the latest spot segment activity suggests that the cryptocurrency may experience short-term headwinds. Spot flows were negative in the last 24 hours.

Coinglass revealed outflows worth 16.26 Million on December 3. The last time Polkadot price experienced a similar amount of outflows was November 12.

It retraced by almost 20% after that. It had already retraced by 6.32% at press time which could indicate that more potential downside could be on the way. Especially, if demand fails to offer a counter this week.