Polkadot on Brink of Rebound as DOT ETF Rumors Ignite Investor Interest


Change is afoot for Polkadot (DOT), the esteemed blockchain network recognized for its unique capability of linking dissimilar blockchains. After enduring a strenuous few months, punctuated by a debilitating 50% plunge in price from its zenith in April, Polkadot appears to be showcasing glimmers of a potential resurgence.

This optimistic aura surrounding Polkadot stems from a trio of significant factors: secretive exchanges about a Polkadot-specific exchange-traded fund (ETF) on Coinbase, a bullish indication in the technical chart pattern, and a robust infusion of liquidity in the market.

Follow us on Google News! ✔️

Earlier in the week, invaluable information was unearthed by crypto aficionado 0xNoble, who alluded on a social media platform that Coinbase might be secretly plotting the plan for a DOT ETF. This rumor intimates that the crypto exchange is in the nascent stages of lodging an application for the ETF, with the initial approval milestone predicted for July 15th.

Coinbase’s significant blueprint plotted on June 28th directly aligns with this news, featuring the submission of applications for DOT Futures Contracts, a Futures ETF, and a Spot ETF.

An ETF for Polkadot has ignited anticipation within the community. Given that exchange-traded funds are traded akin to stocks on mainstream exchanges, they have the ability to draw a fresh influx of investors into the realm of cryptocurrency. This wider exposure often materializes into amplified buying pressure, potentially catapulting prices for the base asset into higher territories. It’s worth noting that the ETF proclamation has already instigated a flurry of activity on Coinbase Derivatives, displaying the extent of investor interest.

Adding to the anticipation of a DOT rally is recent technical scrutiny by esteemed cryptocurrency research firm ZAYK Charts. Their study of DOT’s 24-hour chart exposed a captivating, so-called falling wedge pattern. This pattern, which mirrors converging trendlines on a downward tilt, enveloping lower highs and lows, is characteristic of a potential bullish resurgence despite its conventionally bearish appearance.

ZAYK Charts indicates that the falling wedge is suggestive of the waning influence of sellers who, until now, have been in the driver’s seat. Lending support to this notion is Polkadot’s repeated oscillations within this pattern since February – the lower trendline consistently acting as a bulwark, while the upper trendline acting as resistance.

The anticipation from ZAYKCharts is bullish indeed, hinting towards a breakout from the wedge, which usually precipitates a significant uphill price trajectory. The breakout target has been earmarked at around $9.60, signifying a potential profit of over 50% from the current price level.

The timing of this expected breakout is critical. As DOT continues its trade within the ever-tightening wedge, the tension gathers momentum setting the breakout as imminent.

Another intriguing layer to this narrative is the significant liquidity present in the market. A heatmap analysis reveals concentrated liquidity zones for DOT between the brackets of $6.45 and $6.96. Essentially, liquidity refers to the ease with which an asset can change hands in a buy or sell exchange.

High liquidity equates to fluid price shifts, ensuring that massive buy or sell orders do not significantly impact the price dynamics. Between the price range of $6.45 and $6.96, high liquidity establishes an amicable environment for a predicted breakout. This copious volume of buy and sell orders can perform as a cushion, absorbing the selling pressure and thereby averting drastic price falls.

In the event of a breakout from the falling wedge, this liquidity might serve to propel DOT’s price towards the $9.60 target zone, as identified by ZAYK Charts.