There is a lot of talk in the cryptocurrency community about Polkadot (DOT), a well-known blockchain tool that helps connect different chains, making a comeback. After a rough patch during which DOT fell almost 50% from its April high point, it is now showing signs of rebound that are very encouraging.
There are three things that make people optimistic about Polkadot : reports about an exchange-traded fund (ETF) on Coinbase that will focus on DOT, a bullish technical chart pattern, and strong market liquidity.
Polkadot ETF Sparks New Interest
Online rumors have been going around lately that Coinbase might be getting ready for a DOT ETF. If this ETF comes to life, it could bring a lot of new buyers into the cryptocurrency space, which could make prices go up.
This rumor comes after Coinbase recently filed for Polkadot Futures Contracts, a Futures ETF, and a Spot ETF. This shows that the exchange is planning to move into DOT-related financial goods.
ZAYK Charts’ technical experts have found an interesting pattern on DOT’s one-day chart.
It’s called a falling wedge. Even though this trend usually means that prices are going down, it could mean that market sentiment is changing. According to ZAYK Charts, the price will likely break out of this pattern and reach its goal of $9.60, which is a significant rise from where it is now.
There are large areas of liquidity for DOT between $6.45 and $6.96, which adds to the positive mood. High liquidity in these areas signals strong support levels, which could protect DOT from sharp drops and make price changes more gradual.
As people get more excited about a possible breakout, investors are keeping a close eye on what’s happening with the DOT ETF and technical signs, getting ready for possible gains in the near future.
