Polkadot (DOT) Price Prediction: Will DOT Repeat the 2020 Accumulation Pattern and Explode by 730%?

Polkadot [DOT] has experienced favorable market conditions over the past month. As such, DOT has seen moderate gains on its price charts since hitting a local low of $3.8.

Polkadot (DOT) has seen moderate gains on its price charts since hitting a local low of $3.8. At the time of writing, DOT was trading at $4.253. This marked a 2.83% surge on monthly charts.

However, DOT remained relatively low from its recent high of $6.477 and approximately 92.27% below its ATH of $55.

One crypto analyst, Toni Bitcoin, suggested that DOT is mirroring 2020. In his analysis, he highlighted a period of accumulation starting from October 2020. During this accumulation phase, DOT experienced a parabolic surge.

Starting from October, accumulating DOT yielded gains of 73.05% as the altcoin rallied from $3.5 to $6.093. A breakout from a key resistance level at this price saw DOT surge to $42.361 and reach ATH months later. This marked a historical rally, surging by 730.59%.

If DOT repeats the 2020 pattern, the altcoin will see a historical surge. However, it is important to note that past performance does not guarantee future results and traders should always exercise caution.

With that in mind, here’s what other market indicators had to say.

Polkadot’s Long/Short Ratio remained above 1 over the past 24 hours. This suggests that many investors are taking long positions, thus longs are dominating the market.

This demand for long positions is further supported by a positive DyDx exchange funding rate. This shows that longs are confident with the market and are willing to pay shorts during downturns to hold their positions.

Additionally, a positive OI-weighted funding rate strengthens our earlier observation regarding a high demand for long positions.

Finally, Polkadot has seen a sustained rise in open interest per exchange. This has increased from $47 million to $54.3 million at press time. With a high demand for long positions, this shows that the new position openings are largely longs.

Simply put, DOT is experiencing positive market sentiment and increased investor favorability. Thus, if these conditions hold, DOT will attempt the next critical resistance level at $5.0. In a bullish scenario, a breakout from this level will strengthen the altcoin to hit $6.4.

Therefore, a rally as predicted by the earliest will mean 3 months of accumulation, with a historical rally occurring from January to February 2025.

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