Polkadot (DOT) is retesting the critical $3.44–$3.53 support zone, showing signs of recovery with rising open interest and a stable $5.78 billion market cap, suggesting a potential rebound toward $4.46 resistance.
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DOT retests key Fibonacci support between $3.44 and $3.53, previously a resistance area turned support.
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Long liquidations reached $370K in 24 hours, yet open interest increased by 2.76%, indicating sustained trader activity.
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Market cap remains steady at $5.78 billion with no inflation risk, supporting a possible price recovery toward $4.00–$4.46.
Polkadot retests $3.44–$3.53 support with rising open interest and stable market cap, signaling a rebound potential to $4.46. Stay updated with COINOTAG.
Polkadot’s Key Support Zone Holds Strong Amid Market Pullback
Polkadot (DOT) is currently retesting the $3.44–$3.53 support zone, aligning with the 0.618-0.786 Fibonacci retracement levels on the daily chart. This zone, once a resistance barrier, now acts as a pivotal support area. The recent price of $3.61 reflects early recovery signs, indicating potential bullish momentum toward the next resistance levels at $4.00 and $4.46.
How Does Market Structure Influence DOT’s Price Movement?
Since early July, DOT’s market structure has exhibited higher highs and higher lows, maintaining an upward trend despite recent volatility. The pullback from $4.46 brought the price back into this critical demand zone. Intraday data shows active buyer and seller participation, with price opening near $3.53, dipping to $3.43, then recovering steadily, underscoring market resilience.
Market Activity and Derivatives Data Reflect Trader Confidence
Data from Coinglass reveals $386.75K in total liquidations over the past 24 hours, predominantly from long positions totaling $370.86K. Despite this, open interest increased by 2.76% to $426.11 million, signaling sustained trader engagement. Derivatives volume fell by 41.22% to $352.54 million, while the long/short ratio remains below 1 at 0.9712, with Binance traders showing a stronger long bias at 3.4543.
DOT’s market capitalization holds steady at $5.78 billion with 1.6 billion tokens circulating. The full diluted valuation matches the market cap, indicating no inflationary pressure. This stability in supply combined with steady price action supports the potential for a sustained recovery if demand near the support zone persists.
| Metric | Value | Comparison |
|---|---|---|
| Open Interest | $426.11M | +2.76% increase |
| 24h Long Liquidations | $370.86K | High trader activity |
| Market Cap | $5.78B | Stable, no inflation risk |
What Is Driving Polkadot’s Potential Rebound?
Polkadot’s rebound potential is driven by its retest of a critical support zone between $3.44 and $3.53, combined with rising open interest and a stable market cap. These factors suggest renewed buying interest and a possible move toward resistance levels at $4.00 and $4.46.
How Do Derivatives Influence DOT’s Market Sentiment?
Derivatives data shows significant long liquidations, yet the increase in open interest indicates traders remain engaged. The long/short ratio below 1 suggests cautious optimism, while Binance’s stronger long bias points to selective bullish sentiment among retail traders.
Frequently Asked Questions
What is the significance of Polkadot’s $3.44–$3.53 support zone?
This support zone corresponds to important Fibonacci retracement levels and has previously served as a pivot point for price reversals, making it crucial for DOT’s potential bullish continuation.
Why is open interest important for DOT traders?
Open interest reflects the total number of active contracts. An increase suggests growing market engagement, which often precedes significant price moves and indicates trader confidence.
Key Takeaways
- Support Zone Holds: DOT retests the $3.44–$3.53 Fibonacci support, signaling a potential bullish reversal.
- Trader Engagement: Rising open interest amid long liquidations indicates active market participation.
- Market Stability: A stable $5.78 billion market cap with no inflation risk supports recovery prospects.
Conclusion
Polkadot’s retest of the critical support zone combined with increasing open interest and a stable market cap suggests a strong foundation for a potential rebound toward $4.46. Continued monitoring of price action and derivatives data will be essential for traders seeking to capitalize on this opportunity. COINOTAG remains committed to delivering timely, expert insights on DOT’s evolving market dynamics.
