Why Polkadot Could Soon Explode
Derived data from DOT shows increasing aggressive long position. Trading volume has surged by +45.85% to reach $494.41 million, while open interest has spiked by +12.89% to settle at $376.11 million.
This simultaneous increase in both metrics and prices suggests the influx of new capital into the market rather than profit-taking. This behavior indicates that traders are betting on continued growth rather than reacting to short-term spikes.
Furthermore, the recent bullish breakthrough coincided with a wave of short liquidations. Over $354.86 K of short positions were liquidated, compared to only $48.19 K on long positions. This dynamic shows that sellers were caught off guard and forced to retreat, fueling further upside.
What’s Next for DOT ?
Beyond immediate price action, macro liquidity trends also support the bullish scenario. The global M2 liquidity index has risen to 97.3, reflecting an increase in capital flows into risk assets. Historically, DOT has moved in line with this index.
Indeed, as analyst FLASH indicates, DOT has rebounded well in its historical accumulation zone and respects its cyclicality. As a result, experts predict a rebound to $10 or even up to $42, according to trader Crypto Patel.
Thus, the current expansion of liquidity provides favorable conditions for further advancement of Polkadot. This external confirmation strengthens the argument that the rise of DOT is not limited to an isolated movement but is part of a broader market trend.
Furthermore, fundamentals may favor DOT in the long term. Indeed, Polkadot is the most decentralized blockchain among its competitors in Proof-Of-Stake.
Technical Analysis : Key Levels to Watch
Polkadot’s bullish breakthrough is not a stroke of luck. Technical momentum, acceleration induced by liquidations, and alignment of macro liquidity point to further upside potential.
DOT is forming a downtrend line in 4H around $4.2 as resistance. If this is broken, DOT should then accelerate to the $5.2 resistance.
Next, DOT has a significant liquidity area between $6 and $5.6. While a major resistance lies at $6.5.
A breakout of $4.2 would trigger a short squeeze that could push its price to $6 or higher. A rise of over 45%
Traders continue to add long positions, while downward pressure has already been relieved. Consequently, the $5.00 resistance now represents the next critical level to watch.
For those looking to buy the token, here’s a practical guide to buying DOT on Weex :
- Create a Weex account
Visit the official Weex website and sign up with your email. Complete KYC verification by submitting an ID and, if required, proof of address. This quick step is essential to unlock all trading features. - Add Funds
In the “Deposit” section, fund your wallet with cryptos (USDT, BTC, etc.) or via fiat (credit/debit card, bank transfer, Alipay, subject to availability). Follow the instructions to finalize. - Access DOT Market
Head to “Spot Trading,” type “DOT” in the search bar, and select the DOT/USDT pair to open the exchange interface. - Make the Purchase
Choose a market order for instant purchase or a limit order to set a specific price. Enter the desired amount of DOT, verify, then confirm your transaction.
