Intention and Inflows Could Help Polkadot (DOT) Price Escape Consolidation

Polkadot’s price has not had the best luck in recovering the losses it witnessed during the early June crash. 

Nevertheless, the investors have not lost optimism as they continue to pour money into the asset to push a price rise.

Polkadot Investors Remain Bullish

Polkadot’s price is acting the opposite of what the investors are expecting. Polkadot investors are increasingly optimistic, placing long bets in anticipation of a price rise. This optimism is reflected in the consistently positive funding rate, indicating strong sentiment among traders.

One notable aspect of Polkadot’s market activity is the steady inflow of investments. Since mid-June, these inflows have been on a consistent upward trend, suggesting growing interest and confidence in the project.

Polkadot Funding Rate. Source:  Coinglass

The positive funding rate is a key indicator of investor sentiment. It shows that traders are willing to pay a premium to hold long positions, betting on future price increases for DOT. This optimism can drive further investment and interest in the cryptocurrency.

Overall, the increasing inflows and positive funding rates are encouraging signs for Polkadot . These factors indicate a strong belief in the project’s potential, potentially leading to sustained price growth in the future.

Read more:  What Is Polkadot (DOT)?

Polkadot CMF. Source:  TradingView

DOT Price Prediction: Escape Ahead

The factors mentioned suggest a bullish outlook, indicating a strong potential for a rally. However, a confirmed recovery will only occur if the altcoin breaks out of the current consolidation range between $6.5 and $5.5.

These levels have been holding Polkadot’s price captive for over a month now. Once the upper limit of this consolidation is breached, DOT would be able to enable a rise to $7 to recover the recent losses.

Read more:  Polkadot (DOT) Price Prediction 2024/2025/2030

Polkadot Price Analysis. Source:  TradingView

On the other hand, a failed breach could continue the consolidation. The current bullish momentum could diminish by the time DOT reaches $6.5 again , which would invalidate the positive outlook.