Polkadot is significantly accumulating around $3, and this is an indication of smart money placement for a bullish breakout and revisit all-time highs.
Polkadot (DOT) is drawing the attention of smart money as it accumulates around the $3 range, showing that a bullish trend may emerge in the future.
The market is now experiencing a high level of accumulation on smaller time frames after the prices have closed around this price, and there is a high volume spike followed by smooth retracements.
This trend implies that institutional investors are setting up DOT in front of a potential increase.
Why $3 Is the Hotspot for Accumulation
As CryptoPulse on X pointed out, Polkadot is now beautifully poised around $3, which is viewed as one of the best accumulation zones.
Source – X
With technical and fundamental analysis, volume indicators reveal controlled buying pressure absorbing supply during consolidation.
The price framework indicates that the low points are higher on short-term charts, and they also rebound over time by above than 3 points, which indicates stable liquidity and involvement in the market.
Within these dynamics, Coinglass derivatives data report a decline in traded volume and no changes in open interest.
The long-to-short ratio of DOT at Binance and OKX is bullish, indicating that the best traders are optimistic that the currency will recover.
The activity on-chain remains robust due to the consistent staking and parachain creation, which promotes the positive impetus gaining ground around the support zone.
Brace for a Breakout Toward Historic Highs
Such a market formation makes Polkadot potentially test the past all-time highs of $4 and $5, in case of a breakout.
Technical indicators are an indication of an excellent recovery when the price exceeds the resistance level of $3.78.
Analysts warn that potential short-term corrections may occur where this major resistance may not withstand, but the general trend is that of increasing optimism.
Currently, the smart money hoarding presents a rare chance of entering before an imminent explosion.
As one of the X insights noted, the best time to prepare is when the prices are low, not after the move has started.
The build-up stage around $3 is important in ensuring that one stays above the projected upward trend in DOT.
The post Polkadot News: Polkadot Primed Near $3 as Smart Money Builds Position appeared first on Live Bitcoin News.