Polkadot (DOT) Price Surges 6.63% as Investors React to ETF Speculation and a Recent Token Burn

The price increase comes amid rising open interest and renewed optimism about Polkadot's long-term prospects.

Key Insights:

* Polkadot price has gained 6.63% in the past 24 hours, trading at $5.069 as investors react to ETF speculation and a recent token burn.

* The price increase comes amid rising open interest and renewed optimism about Polkadot’s long-term prospects.

* Analysts are closely watching the $5.20 resistance level, which could determine the cryptocurrency’s next move.

Grayscale’s application for a Polkadot ETF with Nasdaq has sparked widespread interest as it could open up institutional avenues for investing in DOT. The United States’ Securities and Exchange Commission (SEC) has reviewed the filing and the decision is likely to be made between April and June 2025. Another is from 21Shares that has its proposal for the ETF licence in sight and may start next year, mid-2025.

The approval of a Polkadot ETF could attract more institutional investors, similar to what was seen with Bitcoin and Ethereum ETFs. This could put significant upward pressure on Polkadot’s price.

After a recent downturn, the market has responded positively to the bullish signals. The Relative Strength Index stands at 49.01, showing that it’s rising from the oversold region but still below the bullish region. It is worth noting that every reading above 50-55 could be an indication of more buying pressure. The MFI is still at 45.14 that shows both buying and selling are equally present with possible change in its momentum in the near future.

According to the Cumulative Volume Delta (CVD), the buy volume is 1.23 million and hence there are more buyers than sellers in the market. As observed from the Polkadot price prediction above, this trend might see Polkadot rise past the $5.20 resistance level, with the next level being $5.50.

Nonetheless, if the buyers remain inactive, other crucial areas of interest at $4.70 and $4.50 can be tested.

Polkadot’s open interest (OI) has risen by 4.92% in the last 24 hours, reaching $209.8 million. The majority of these positions are in perpetual contracts, which saw a 4.98% increase. This indicates that traders are taking leveraged positions in anticipation of further price movement.

At the present time, Polkadot price is very close to the $5.20 price level and this level could prove to be crucial for the movement of the price. However, if it climbed above this level then it can go further to $5.50. If they are rejected, $4.70 and $4.50 may offer support levels.

Polkadot price has dropped by 94.38% since the beginning of 2023, setting a new all-time low at $4.305 on January 1. This represents a significant decline from its previous highs.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.