Polkadot: Is $5.03 next for DOT? Key data suggests…

• DOT has surged by 7.07% over the past seven days.
• Polkadot’s positive market sentiment showed increased investors’ favorability.

Polkadot [DOT] experienced a strong upswing over the past month. As of this writing, Polkadot was trading at $4.50.

This marked a 7.07% increase over the past week. Also, DOT has surged by 7.67% on monthly charts.

This price increase on weekly surge has seen increased trading activities too. As such, Polkadot’s trading volume has increased over the past 24 hours, hiking by 23.10% to $132.3 million.

Since hitting a monthly low of $3.82, DOT has maintained an upward momentum. These market conditions have positioned DOT to break out from a descending trendline.

Thus, the prevailing market sentiment has sparked optimism, as illustrated by data from Market Prophit. Notably, DOT’s crowd sentiment was positive at 0.167, while the Buzz score was 1.25.

What DOT’s charts suggest

DOT was experiencing increased investor favorability at press time, as indicated by increased buying activity.

Source: TradingView

For starters, Polkadot’s Relative Strength Index was 56 at the time of writing after rising from a low of 43.6 in less than a week. This suggested that DOT had higher buying pressure than selling.

This notion was supported by a positive Chaikin Money Flow (CMF). At press time, CMF was 0.27, implying higher demand for Polkadot.

Source: Santiment

Looking further, Polkadot’s DyDx Exchange Funding Rate has been positive throughout the past week. This showed that long position holders were paying short position holders.

When investors are willing to pay a premium to hold their positions, it suggests confidence in the altcoin’s direction.

Source: Coinglass

Additionally, DOT’s OI Weighted Funding Rate was positive, having remained so for the last five days.

This further supported AMBCrypto’s previous observations that the altcoin has a higher demand for long positions than short ones.

Source: Santiment

Finally, Polkadot’s Open Interest in USD per Exchange has shown a sustained uptrend over the past week, increasing from a low of $39.5 million to $46.16 million at press time.

This showed increased inflow as investors opened new positions while existing ones held their positions.

Read Polkadot’s [DOT] Price Prediction 2024–2025

Simply put, DOT was experiencing a strong uptrend amidst increased investor favorability. If this prevailing market sentiment holds, Polkadot’s daily candlestick will close above the descending trendline.

A breakout from this level will see DOT reach the $5.03 resistance level.