Polkadot [DOT] Surges 9.21% to $4.11, Eyes $5.00 on Bullish Momentum

Polkadot [DOT] has recently experienced a significant surge in value, rising over 9% and approaching the $5 mark. This upward momentum has been driven by a combination of technical indicators and market dynamics. The asset has formed a cup-and-handle pattern, reclaiming the $4.00 level with strong volume, which is a bullish signal indicating a potential trend continuation. At the time of writing, DOT was trading at $4.11, marking a strong 9.21% daily increase. This move follows a decisive market structure shift and aligns with growing technical strength.

The bullish momentum in DOT is further supported by derivatives data, which shows aggressive long positioning. The trading volume surged, while Open Interest also increased, suggesting fresh capital entering the market rather than profit-taking. This behavior indicates that traders are betting on continuation rather than reacting to short-term spikes. Additionally, the latest price breakout coincided with a wave of short liquidations, with over $354.86K in short positions being wiped out. This data shows that sellers were caught off guard and forced to exit, fueling additional upside. As a result, the path toward $5.00 now appears less obstructed and more technically achievable.

Beyond immediate price action, macro liquidity trends are also supporting the bullish narrative. The M2 Global Liquidity Index has climbed, reflecting increased capital flow into risk assets. Historically, DOT has moved in tandem with this index. Therefore, the current liquidity expansion offers favorable conditions for DOT to rally further. This external confirmation strengthens the argument that DOT’s rise is not isolated but part of a broader market shift.

In conclusion, Polkadot’s bullish breakout is not a fluke. Technical momentum, liquidation-driven acceleration, and macro liquidity alignment point to further upside. Traders continue to add long positions, and short pressure has already been flushed out. As a result, the $5.00 resistance now stands as the next critical level to watch. If buying interest holds steady, DOT looks poised to test—and potentially breach—this key psychological barrier in the near term.