Key insights
Polkadot has experienced a significant surge of 30%, reclaiming a crucial support level amidst positive market sentiment. With RSI at 73 and Open Interest at $483 million, there might be a short-term correction before a potential rally towards $5.40.
Following a shift in market sentiment, Polkadot [DOT] has successfully regained a key support level that it previously lost during market turmoil.
The asset has seen a remarkable 30% increase in value over a two-week period, hinting at a possible repetition of its historical bullish trend from its current position.
Polkadot positioned at a significant reversal point
This particular level has consistently attracted investors and traders due to its history of price reversals.
According to TradingView data, since October 2023, the price of DOT has reached this level more than six times, resulting in notable price surges each time.
Source: TradingView
Given the current market sentiment, this could be the initial stage of another potential surge, which explains the growing interest from traders and investors.
Majority of Binance traders bullish on DOT
On-chain analytics tool CoinGlass indicates that long positions outnumber short positions among traders.
At present, Binance’s DOT/USDT Long/Short ratio has reached its highest point since June 2025, standing at 3.92, suggesting a strong preference for long positions over short ones.
Source: CoinGlass
The data indicates that 79.68% of traders have taken long positions, while 20.32% have opted for short positions.
Currently, traders are showing interest in liquidation levels at $4.32 and $4.48.
At these levels, long positions worth $4.23 million and short positions worth $1.09 million have been established, as reported by CoinGlass.
Surge in DOT Open Interest as bulls dominate
At the moment, DOT is priced at $4.29, with a 5.06% decrease over the last 24 hours.
Despite this, investor and trader participation remains high, with a 48% increase in DOT’s 24-hour trading volume compared to the previous day.
Furthermore, DOT’s Open Interest has risen by 4.50% to $483.36 million, indicating significant capital inflow into the asset and suggesting a continuation of its upward trend.
RSI signals overbought conditions, potential pullback?
Technical analysis by AMBCrypto indicates that DOT is currently in an uptrend. However, after a continuous 30% price surge in the last nine days, the asset appears to be overextended.
Source: Trading View
The Relative Strength Index (RSI) currently stands at 73, indicating that the asset is in the overbought zone and may experience a correction before another upward movement.
If DOT maintains above the $3.90 level, there is a strong chance of a 20% price increase and a potential target of $5.40 in the future.
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