Can Polkadot outshine Solana and Avalanche in 2024?

• DOT might witness a resistance near the $8.6 mark in the coming days. 
• Polkadot was down by 13% in the last seven days, and indicators looked bearish. 

Polkadot [DOT] is swiftly making its way on the list of the top 10 cryptos by market capitalization, thanks to its price gains. Apart from DOT, Solana [SOL] and Avalanche [AVAX] also displayed promising performances in the recent past.

However, things for DOT looked better than the rest of the two, if the latest data is to be considered.

Polkadot’s price to skyrocket in 2024? 

Polkadot registered a massive uptick in its price during the last month of 2024. As per CoinMarketCap, DOT was up by more than 48% in the last 30 days.

At the time of writing, DOT was trading at $8.13 with a market capitalization of over $10 billion.

Because of the bull rally, DOT managed to become the 11th largest crypto by market cap. Apart from Polkadot, SOL and AVAX also registered promising gains during the same time.

But Tony, a popular crypto analyst, pointed out that while the latter two had a few resistance levels to witness, DOT had a clean way ahead as it was yet to reach its first resistance level.

#Polkadot $DOT the bull run has only just begun

Compared to $AVAX and $SOL$SOL has reached the second resistance$AVAX has reached the first resistance$DOT has not yet reached first resistance

As we can see #DOT has a longer run and is a better buy because of the bullish run pic.twitter.com/yT3kSwHAvk

— Tony ₿itcoin⚡ (@Toni_Bitcoin) December 31, 2023

Therefore, to better understand whether DOT’s way ahead is simple, AMBCrypto checked Polkadot’s liquidation heatmap. Our analysis found that things were more complicated than they appeared at first glance.

The token witnessed a massive increase in liquidation near the $9.2 mark, after which its price started to drop. Polkadot’s liquidation then increased when its value reached $8.6, causing a further price plummet.

Hence, DOT must go beyond these levels to initiate a bull rally in 2024.

Source: Hyblock Capital

How likely is it for DOT to start a bull rally?

Despite the hike in DOT’s price last month, its price action has turned bearish in the recent past. This was evident from the fact that DOT was down by 13% in the last seven days.

However, the good news was that while the token’s price dropped, its Open Interest also fell. Whenever Open Interest drops, it increases the chances of a trend reversal, suggesting a price uptick.

It was interesting to note that while DOT’s price sank, its funding rate remained high, reflecting its popularity in the derivatives market.

Source: Santiment

Read Polkadot’s [DOT] Price Prediction 2023-24

Upon checking DOT’s daily chart, AMBCrypto found quite a few bearish indicators. For instance, Polkadot’s price touched the upper limit of the Bollinger Bands at press time. Its MACD also dilated into a bearish crossover.

DOT’s Relative Strength Index (RSI) moved southward, increasing the chances of a continued downtrend in the days to follow.

Source: TradingView