Polkadot sets its sights on $8 after a decisive breakout

First target of $6.75, and then $8.00.

We would be buyers of pullbacks to $5.80.

Despite the Funding Rate settling shy of 0.02%, OI remains low, so overall, it is a nice mechanics setup here.

TLDR

• Polkadot broke out above $5.75 resistance, eyeing upside targets of $6.77 and $8.
• Funding elevated around 0.02%, but open interest remains low compared to the 2022 peak.
• The RSI is approaching overbought levels on higher timeframes, something to monitor.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

DOT 1D

Technical analysis

• DOT has maintained its uptrend, which has been important for continued bullish price action.
• DOT has now broken out above the horizontal resistance of $5.75, with the next target likely $6.77. 
• The second target to the upside is $7.98.
• The RSI is now just about into overbought territory on the major timeframes except the Weekly. This is fine for now unless we begin to see it becoming too over-extended.
• We would be looking to add light DCA orders to our Spot DOT bags at $5.77. 

Market mechanics

• Open Interest remains at low levels of $210m; this is well below the highs in 2022 of north of $600m. We’re yet to see an influx of leverage into DOT - a positive sign that you’re still early on this.  
• The OI-Weighted Funding Rate has sat at a relatively high level of 0.02% for the last few days, indicating a bias to be Long rather than Short. This is perhaps the only negative for DOT here. But it’s not so negative that it invalidates our bullish thesis.  

Cryptonary’s take

We really like DOT here for further upside. The TA is positive, the volume is good, and the OI remains low, indicating that participants are yet to really flock into DOT as they have with other plays.

We see the next targets for DOT as $6.77 and $8.00. We would look to add light DCA orders to DOT at $5.77 if this level is retested, where we’d hope it would hold as new support.