Since “Uptober” was really a Bitcoin month so far, most of the top altcoins either consolidated or drove with the larger market-driven profits. Bitcoin saw almost 15% gains while it only gained 5% while top alts like Cardano and Solana saw losses.
Polkadot, ranked 8th Alt, seemed to have gained some momentum, however. With DOT posting 6.5% daily and 13% weekly gains trading at $ 36.2 at the time of writing, speculation that the Alt is hitting its ATH rose again.
With Polkadot comfortably above the critical $ 33 resistance this time around, the real question was whether those gains were market-driven. If not, can they stand?
Previous rallies at a glance
After the lightning crash, DOT drove on renewed bullishness as the Alt price on the daily chart experienced a parabolic rebound similar to that at the beginning of the year. However, this was countered with considerable losses and consolidations.
The price of DOT in particular was sensitive to BTCs and more or less followed the lead of the top coin over the last month. But on the upside, DOT held up better than the bigger market when BTC fell.
Notably, on a 12-hour chart, the RSI had finally entered the overbought zone after more than a month. DOT’s price could target a 20% rise as it flipped the $ 33 level as seen on previous rallies. Just looking at the pricing structure, the odds for an ATH looked high, but what about on-chain data?
Can these factors be spoilsport?
Amid great anticipation of DOT’s price tag and increased hope that the network could announce the Polkadot Parachain auctions next week during the Sub0 online event, DOT’s social volume saw a sharp surge, with Polkadot being a “trending project” was on social media.
Although DOT’s high social volume hasn’t had a great correlation with its price in the past, the positive sentiment has been good for the network. However, the network saw slowdown in development as it declined more than 50% in the last five days after press time.
DOT’s open interest in the futures market since the May sell-offs has been $ 745.75 million. This indicated an increase in the number of outstanding contracts from market participants, while underscoring the fact that new capital was flowing into the coin’s markets.
So while the chances of DOT reaching an ATH looked solid, the possibility of a trend reversal as seen earlier couldn’t be ruled out either if the larger market consolidates. All in all, DOT appeared to be at an interesting crossroads.