DOT eyes $1.76 as ETF records first inflow: Check forecast

Polkadot (DOT) is in the red while other major cryptocurrencies are rallying.

The coin is down by less than 1% in the last 24 hours and now trades at $1.524.

It is approaching a key resistance zone, where a breakout could trigger a rally.

The rally could be fueled by growing institutional demand for Polkadot ETFs. 

Furthermore, improving derivatives metrics supports a bullish sentiment, hinting at a potential breakout in the upcoming days.

Polkadot ETFs record first inflow

DOT is down by less than 1% in the last 24 hours despite positive news from the Polkadot ecosystem.

Crypto asset manager 21Shares recently launched the first spot Polkadot ETF in the US on March 6.

The fund, TDOT, offers investors regulated exposure to the DOT token. Recent data obtained from SoSoValue revealed that the spot DOT ETF recorded its first positive inflow of $544,480 on Thursday.

The inflow indicates early institutional interest. If these continue and intensify, DOT could see a price rally in the upcoming days.

Polkadot’s derivatives data also suggest a bullish bias. The CoinGlass futures Open Interest (OI) for DOT was at $211 million and is approaching the February 26 high of $256 million.

Rising OI generally indicates fresh capital entering the market and increased buying activity, which could support the ongoing DOT price rally. 

Furthermore, DOT’s funding rates data indicate a positive outlook for the coin.

The metric switched positive on Thursday and now reads 0.0058%, indicating longs are paying shorts and suggesting bullish sentiment toward DOT.

Finally, CoinGlass’s long-to-short ratio for DOT reads 1.14 on Friday.

With the ratio now above one, more traders are betting on Polkadot’s price to rally.

DOT eyes the February 25 swing high

The DOT/USD 4-hour chart is bullish and efficient as the broader crypto market is in the green.

The near-term bias is neutral with a mild bullish tilt as price trades above the $1.45 support level.

If the daily candle closes above the 50-day EMA of $1.56, DOT could extend its rally towards the February 25 swing high of $1.76.

An extended rally would expose the 100-day EMA at $1.83 in the near term. 

The Relative Strength Index (RSI) on the 4-hour chart at 54 signals balanced momentum with a slight upside lean. 

The Moving Average Convergence Divergence (MACD) indicator holds in positive territory, suggesting steady but not aggressive buying interest.

If the breakout attempt fails, DOT will retest the first major resistance level at $1.45.

Failure to protect this support level would bring the $1.23 region into focus, with buying pressure expected in this area. 

A daily candle close below $1.23 would weaken the bullishness and expose a deeper pullback within the longer-term downtrend.

On the other hand, a sustained trading above $1.52 would keep the focus on a potential test of $1.68.