Polkadot's native token (DOT) has been trading within a narrow range between $6.10 and $6.25 since mid-June, and recent analyses indicate that this sideways trading pattern might soon break. An examination of DOT's market volatility reveals a significant drop, with the one-day volatility at its lowest since May 18th, recorded at 0.0026. This low volatility suggests limited price fluctuations, potentially keeping DOT's price confined within its current range.

Apart from volatility, the depreciating Open Interest (OI) for DOT further supports a stagnant price prediction. Open Interest, which measures the value of outstanding futures contracts, has significantly declined from over $250 million to around $131.77 million. This reduction indicates diminishing market interest and liquidity for Polkadot, hinting that a significant price movement beyond $6 might be challenging in the short term.

A closer look at DOT's liquidation heatmap shows a high probability of price movement towards $5.90. Liquidation heatmaps identify price zones where major liquidation events may occur. In Polkadot's case, an accumulation of liquidity between $6.02 and $5.77 suggests a downward price trend could be imminent. Should this scenario materialize, DOT might experience a temporary dip within this range.

Despite the short-term bearish forecast, some market analysts maintain a positive long-term outlook for Polkadot. Notable crypto analyst Michaël van de Poppe recently highlighted that DOT is trading at a critical support and accumulation point. He emphasized that the underlying fundamentals of Polkadot, along with the growing ecosystem of projects on its platform, position it as a strong performer in the years ahead.

The former claimed that DOT is “reaching the crucial area of support and the area for accumulation.” He predicted that the asset will be “a great mover in the coming years” based on the numerous projects within the Polkadot ecosystem, such as the growing RWA industry. The analyst presented a price chart according to which DOT may establish a “higher low” before heading north. He envisioned a rally toward $17 as long as the token surpasses the major resistance level of $9.29.

Crypto Tony argued that DOT bulls “are doing well and holding” as of the moment. He thinks the bullish trend could be interrupted if the asset slips below the $5.80 mark (approximately). “If we can continue to hold for a few weeks, I will look for an entry,” the trader said. Crypto Thanos and il Capo of Crypto also touched upon the matter recently. The former suggested that Polkadot’s token is in the “accumulation range” as long as it trades in the $6-$7.50 range. The analyst has high hopes for it based on several fundamentals such as “supersession of the old model of parachain auctions,” “radical change in the use“ of the asset, reduction of inflation via the burning of fees, and others. For their part, il Capo of Crypto maintained that DOT is “forming a new bullish trend“ and is leading among major blockchains in advancing Artificial Intelligence (AI) and gaming.