Polkadot Heres Why DOTs Price is Expected to Readjust to 7

Coin World Report:
Indicators in the DOT market suggest that prices may continue to rise, with a target price of $6.96. Funds are flowing towards the token, and an analyst predicts a breakthrough.
In a surprising turn of events, Polkadot [DOT] has become the cryptocurrency with the highest increase among the top 20 in the market. As of the time of writing, DOT is trading at $6.24, a 5.18% increase in the past 24 hours.
However, the upward trend does not appear to be stopping anytime soon. This is based on the signs shown by the liquidation heat map. In simple terms, the liquidation heat map predicts price levels where significant liquidations may occur.
DOT is ready to break free from the slump
Liquidations occur when exchanges close positions due to increased price volatility. It also happens when traders do not have enough funds to keep their positions open.
But aside from that, the heat map shows areas of high liquidity, indicating price levels where the cryptocurrency may move. For Polkadot, AMBCrypto noticed high liquidity between $6.45 and $6.96.
Considering this data, if buying pressure increases, the price of DOT might rise on top of the recent uptrend. If that happens, the token’s value could reach $7 or higher.
Is a breakout on the way?
Another indicator supporting the growth is weighted sentiment. As an expanded view of social volume, weighted sentiment measures the broader market’s perception of a project.
For example, if there are more positive comments online than negative comments, the sentiment will be positive. However, more negative comments will make the sentiment negative.
As of the time of writing, Polkadot’s weighted sentiment, previously at -0.143, has moved to 0.307. This means that people are becoming more confident in DOT’s potential.
If this continues, it could lead to an increase in demand for the token. If that happens, the price of DOT might reach $7 in the coming days after the publication of this article. Similar to market sentiment, Open Interest (OI) supports price increases.
Open Interest refers to the sum of all outstanding contracts in the derivatives market. When it increases, it indicates that net positioning is growing. This also means that traders are deploying funds to take advantage of DOT’s price volatility.
However, this decline suggests that traders are withdrawing funds and closing positions. As of the time of writing, Polkadot’s open interest has risen to $133.35 million.
If this growth continues, it may support further price increases, pushing DOT to $7.
Additionally, some analysts on X share similar views, believing that the price of DOT may continue to rise. One of them is Captain Phibek.
Read Polkadot [DOT] Price Prediction 2024-2025
According to Phibek, DOT is nearing a major breakthrough. In a post on X, the analyst shares his research through charts and specifically writes,
“DOT is bouncing back well and is on the edge of a wedge breakout, so please keep a close eye on it.”