Polkadot Surges 88%: Bulls Eye $10.31 as DOT Breaks Out

Polkadot, the native token of the Polkadot network, has recently garnered significant attention from the market following an impressive 88.09% surge in trading volume and a slight price increase of 0.45%. As of this writing, Polkadot is trading at $5.31 after breaking out of its falling wedge pattern formation, a bullish sign that could signal a potential rally towards the $10.31 key psychological level.

Despite the high trading volume and the breakout, DOT bulls must maintain the uptrend momentum to confirm the breakout and target the $10.31 resistance level. If the bulls can hold past this level, Polkadot could potentially reach the $9.07 key resistance level. However, if the bulls fail to sustain the momentum, a retest of the $5.0 support level and a potential drop below it is possible.

Technical indicators suggest mixed signals for Polkadot's price action. While short-term moving averages (10-20 EMA/SMA) indicate bullish momentum, mid-term and long-term moving averages suggest resistance ahead. The 24-hour RSI stood at 45.64 and rose to 56.81 in the 4-hour timeframe, suggesting increased buying pressure associated with the high trading volume. The 24-hour Long/Short Ratio of 2.64 also confirms the short-term bullish investor sentiment.

On the other hand, on-chain metrics reveal a 6.7% decrease in DOT's 24-hour Open Interest at press time. According to DefiLlama data, Defi activity on Polkadot's ecosystem is dominant on its parachains rather than its native chain. In late 2024 toward 2025, Polkadot's ecosystem has seen moderate growth in active addresses compared to the earlier months, but this month has seen a gradual decrease.

Looking ahead, Polkadot's future relies on the growth of its entire ecosystem. The native token, DOT, will require strong buying pressure to maintain its position above the bullish falling wedge pattern in the next few weeks. Investors may be eyeing DOT's short-term gains while diversifying in its parachains as a long-term conviction in its ecosystem.