Polkadot [DOT] has recently attracted significant attention in the market with an 88.09% surge in trade volume and a modest 0.45% price uptick.
Currently, Polkadot is being traded at $5.31 after breaking out of its previously established falling wedge pattern.
Despite the increased trading activity, it is imperative for DOT bulls to sustain the upward momentum to validate the breakout towards the crucial psychological level of $10.31.
Breaking Out of the Falling Wedge: A Bullish Move?
DOT had been confined within a bullish falling wedge pattern subsequent to a recent short-lived rally.
An examination of the daily chart indicates a bullish trend for the altcoin, surpassing the significant $5.0 resistance level on its upper descending trendline.
To hit the $9.07 resistance level is essential for DOT to prolong its bullish trajectory. Further advancement beyond this level could potentially lead Polkadot towards the $10.31 target.
In the event of failure to maintain above the falling wedge pattern, a potential retest of support levels at $5.0 and below might ensue.
Insights from Cryptowaves reveal Polkadot’s 24-hour RSI read 45.64, spiking to 56.81 on the 4-hour timeframe, hinting at heightened buying activity in line with the elevated trade volume.
Data from TradingView highlights a bullish trend in short-term moving averages (10-20 EMA/SMA), while mid-term and long-term MAs inclined towards bearish territory, indicating impending resistance.
With the 24-hour Long/Short Ratio at 2.64, the short-run investor sentiment appears bullish.
An Insight into On-Chain Metrics
Coinalyze data records a 6.7% decline in DOT’s 24-hour Open Interest at the present moment.
According to DefiLlama data, the predominant Defi activity within Polkadot’s ecosystem gravitates towards its parachains rather than the native chain.
In the latter part of 2024 and early 2025, Polkadot’s ecosystem has displayed moderate growth in active addresses compared to previous months, albeit a recent gradual decline in activity.
What Lies Ahead for Polkadot?
The future trajectory of Polkadot hinges on the expansion of its overall ecosystem. Upholding strong buying pressure for the native token, DOT, is vital to sustaining above the bullish falling wedge pattern in the forthcoming weeks.
Investors might be contemplating short-term gains from DOT while diversifying their positions into parachains for prolonged engagement with Polkadot’s ecosystem.