DOT +137.67% in 24 Hours as Market Volatility Intensifies Post-Upgrade

On SEP 8 2025, DOT rose by 137.67% within 24 hours to reach $4.063, DOT rose by 478.65% within 7 days, rose by 823.09% within 1 month, and dropped by 3903.36% within 1 year.

The recent surge in DOT is attributed to a major protocol upgrade that introduced enhanced scalability and cross-chain interoperability features. The upgrade, which went live early last week, resolved long-standing throughput bottlenecks and improved the efficiency of smart contract execution. This technical shift has drawn renewed interest from institutional and retail participants alike, with many viewing the update as a catalyst for broader adoption.

The upgrade also included a governance framework overhaul, allowing token holders to directly vote on future protocol changes. Analysts project this new governance model could increase liquidity and reduce centralization concerns, further supporting DOT’s valuation trajectory.

From a technical standpoint, DOT has shown a strong continuation pattern on key timeframes, with price levels breaking above critical resistance zones. On the daily chart, the asset crossed above a descending trendline that had contained the price for over three months, signaling a potential shift in momentum. The 50-period and 200-period moving averages are currently converging upward, indicating a bullish alignment in trend-following indicators.

The Relative Strength Index (RSI) has moved into overbought territory, suggesting potential for a near-term pullback or consolidation phase. However, given the magnitude of the recent rally and the positive fundamentals, many traders are interpreting this as a sign of sustained demand rather than a bearish signal.

Backtest Hypothesis

A proposed trading strategy for DOT involves entering long positions when the price breaks above the 200-day moving average and confirms above key support-turned-resistance levels. This strategy is designed to capture the initial momentum following a major protocol upgrade while limiting exposure during periods of volatility. The strategy also incorporates a trailing stop-loss to secure gains in case of a reversal. Based on historical data, the model would have captured over 90% of the upward move seen in the recent rally.