Polkadot (DOT) Positioned to Tap $10 as Multiple Bullish Factors Align

Polkadot’s native token DOT has been making strides since the start of the year, and the altcoin has positioned itself to soar to new levels. As displayed by notable indicators, the altcoin is well on its way to tapping a new price month soon.

DOT kicked off the week interestingly, making a noteworthy upswing in price performance. The asset opened on Monday with a bullish recovery, soaring by more than 5% within 24 hours. The asset soared to $6.24, priming it for an upsurge above $8.

Two key indicators, particularly weighted sentiments and Liquidation Heatmap, signal a continuation of an uptrend that could send the asset to $10.

Notably, Weighted sentiment is an indicator that spotlights market players’ outlook on an asset in the global cryptocurrency market, focusing mainly on the asset’s fundamental prepositions. The data depicts an interesting shift in investors’ perception, with weighted sentiment moving from -0.143 to 0.307, a more positive zone. 

A continuous increase in weighted sentiment could positively impact DOT’s current price performance, as online perception has historically impacted assets’ value.

On the other hand, a Liquidated Heatmap is an indicator that attempts to pinpoint an asset’s potential price level at a point where a massive liquidation has been recorded.

Liquidations in the cryptocurrency market typically occur when a trading position is forcefully closed because the available margin becomes insufficient.

With high liquidity between $6.45 and $6.96, a surge in buying pressure could send the asset to new price levels.

Market participants weigh in on DOT’s current trajectory

Popular Cryptocurrency analyst Faibik took to X, formerly Twitter, to note the asset’s trajectory earlier this week. 

“DOT has bounced back nicely and is on the verge of wedge breakout, so keep a close eye on it.” He wrote.

During the time of this report, altcoins are trading sideways, with a handful still stuck in the red zone, while a good number has successfully made it back into the green zone after shedding off losses.

In DOT’s case, the altcoin is currently experiencing mild daily losses. However, over the past seven days, DOT has increased by more than 4.75% despite monthly losses totaling 4.07%. Retreating from its daily high of $6.16, DOT trades at a press time price of $6.25.