Polkadot: Can DOT hold above $5? Key levels to watch now!

• DOT/USDT pair breaks and rejects off $5 resistance.
• Rising open interest and volume increase, signals bullish sentiment.

Polkadot [DOT] broke above the $5.0 price level but faced immediate rejection. This price action on the 4-hour time frame highlights DOT’s struggle at this critical resistance point.

The $2.5 – $4 range is a psychological level serving as both daily and weekly resistance. DOT/USDT pair is currently ascending within a parallel channel.

Source: TradingView

As of press time, DOT had gained 10.54% this week. The overall market bias for altcoins remains bullish, despite the rejection with a bearish engulfing candle, signaling a possible reversal.

Falling wedge pattern

Additionally, DOT is consolidating within a falling wedge pattern 0n the daily timeframe, a structure often indicative of a potential bullish reversal.

The price action of DOT/USDT pair appears to have bottomed out and may be preparing for a bullish breakout.

source: TradingView

The next key level to watch is the upper trendline of this falling wedge, with a successful retest likely before price rallies further, especially with altseason anticipated in Q4 of 2024.

Weekly support and stochastic RSI

Polkadot’s [DOT] weekly support has been holding strong, marking the lowest point for DOT. This support level has rejected price drops five times, and after a higher high was made, the price retracted back to this support.

The stochastic RSI for DOT/USDT is currently oversold, suggesting that the gains seen this week could be the beginning of a larger trend.

Source: TradingView

This anticipated upward movement could be influenced by the expected rate cuts, which would benefit altcoins like DOT.

Open interest

As of press time, Polkadot’s [DOT] open interest is showing a positive OI-weighted funding rate of 0.0046%.

This indicates bullish sentiment on DOT, as traders with long positions are paying 0.0046% to those with short positions, reflecting confidence that prices will rise.

Source: Coinglass

Polkadot’s open interest ranging between $7.917 and $8.004 price levels total $35.838 million, while the $5.30 to $5.39 range has an OI of $8.33 million.

Polkadot statistics

Polkadot’s market cap currently stands at $7.2 billion, with a 24-hour trading volume of $143 million, marking a 15.13% increase.

This has resulted in a 1.91% volume-to-market ratio, indicating market stability with minimal price fluctuations. The total and circulating supply of DOT is 1.49 billion, matching the fully diluted market cap of $7.2 billion.

Source: DefiLlama

Read Polkadot [DOT] Price Prediction 2024-2025

While DOT faces a test at $5.0 level, the broader outlook remains bullish, supported by strong technical patterns, positive market sentiment, and stable market statistics.

With the altseason on the horizon, DOT is well-positioned for potential gains.