- Polkadot’s price chart follows an Elliott Wave pattern, signaling a possible rise to $6.02 if current momentum continues.
- A 24-hour trading volume of $200.76M and a 3.50% price increase suggest renewed market interest in DOT.
- With 1.57B DOT in circulation and no max supply cap, price movements may hinge more on demand than scarcity.
After consolidation and structured price movements, Polkadot (DOT) may soon see a bullish breakout. At the time of writing, DOT was trading at $4.70, up 3.50% over the last 24 hours. The current price movement looks like it could be an Elliott Wave which points to a possible fifth wave going towards $6.02.
Source: CoinMarketCap
Chart Structure Signals Possible Breakout
A technical chart analysis reveals a clear 1-2-3-4 wave formation, with the fourth wave forming a descending channel. The recent price move appears to be breaking out of that channel, which typically precedes the start of a fifth bullish wave. If this structure holds, DOT may be on track to test the $6.022 resistance level, marking a significant near-term upside.
Market Show Growing Interest Amid Stable Supply
The current market capitalization for DOT is $7.43 billion, increasing by 3.52% over the last day. Trading activity over the last 24 hours has jumped to $200.76 million, suggesting more people are interested in investing. The 2.69% volume-to-market cap ratio supports the idea of growing activity around the asset.
Despite the price movement, the circulating supply remains unchanged at 1.57 billion DOT. Polkadot does not have a capped max supply, which may influence long-term valuation differently compared to fixed-supply tokens.
Polkadot Nears Breakout Amid Stable Market Cap
The unlocked market cap is slightly higher than the current cap at $7.47 billion. Meanwhile, the fully diluted valuation (FDV) matches the market cap at $7.43 billion, suggesting there are no significant locked tokens that could impact short-term supply dynamics.
While the chart pattern suggests a potential upward continuation, traders and investors are advised to monitor volume confirmation and price stability above the descending channel. A clean break above $4.80 with sustained buying could solidify the bullish scenario. However, any failure to hold current levels may signal a retest of support near $4.39 or lower.
