Identify how the next DOT price hike will play out for you

• DOT’s high liquidity suggests that the token could climb above $7.59.
• The project approved a new upgrade that could fuel a long-term uptrend

The price of Polkadot (DOT) over the past 90 days has been far from reassuring. Indeed, the token lost 23.60% of its value during the aforementioned period.

However, according to AMBCrypto analysis, DOT holders may soon have reason to rejoice. One of the reasons for this prediction is the liquidation heatmap.

The next step is complete

As a reminder, liquidation occurs when a trader's position is closed due to price fluctuations, insufficient margin balance, or both. However, through the liquidation heat map, traders can identify areas of high liquidity.

This can help predict likely entry and exit points. At press time, using data from Hyblock, there was liquidity concentration between $7.59 and $7.70. This area is known as the magnetic zone, and the price of Polkadot could move in this direction.

If DOT reaches $7.70 and buying pressure increases, the price could continue to rise. However, if the identified liquidation levels match the sell side of the order book, the price could reverse.

According to analyst Michaël van de Poppe's assessment of X, DOT was undervalued. He believes that Polkadot’s scalability and security offerings are the main reasons why the token is trading at a discount. He wrote,

“DOT is one of the highly undervalued blockchains. They released their JAM upgrade and the project focuses on RWA. For what? – POINT focuses on scalability and security.

Polkadot community “JAMs” to the beat

Here JAM stands for Join-Accumulate Machine. A few days ago, the Polkadot community voted on whether or not the upgrade should be implemented.

However, it didn't take long for the community to unanimously agree to the deployment. With the JAM upgrade, the project can replace the relay chain and the interaction with other blockchains could improve.

Additionally, Polkadot's ties to creating an ecosystem for real-world assets (RWA) could fuel DOT's rise. However, this could be long-term, which could push the price towards $20 on the charts.

Looking again at its near-term potential, according to Santiment, the relative strength index (RSI) showed a reading of 48.43. Previously, the RSI was at 29.97 – a sign that the token was oversold.

Source: Santiment

Ergo, its most recent rebound from the lows suggests that DOT's momentum was coming out of its bearish phase. If it holds and the altcoin crosses the neutral region of 50.00, the bullish prediction could be validated and the price could reach $7.70.

AMBCrypto also looked at one-day volatility. As of press time, the metric was beginning to expand, indicating that the price fluctuation could be significant.

Read Polkadot (DOT) Price Prediction 2024-2025

If the increasing volatility is accompanied by the said buying pressure, the rise in DOT can be validated. However, if declines enter the picture, the forecasts will be neutralized.