Regulators on Edge as Polkadot's Breakout Inches Closer

Polkadot (DOT) is showing signs of building bullish momentum, with analysts and market indicators suggesting the potential for significant price gains in the coming months. Recent data from Coingecko indicates that the Polkadot price has stabilized in the past 24 hours and over the last week, with a modest increase of approximately 5%. This upward movement is seen as a sign that the cryptocurrency is shaking off the weakness observed in mid-August 2025, potentially setting the stage for further appreciation.

On Coinglass, trader sentiment appears to be shifting in favor of the bulls. The long/short ratio on major exchanges such as Binance and OKX reflects this optimism, with figures standing at 3.9 and 2, respectively. This suggests that traders are increasingly positioning themselves for a price breakout. A key level of interest is $5, which analysts believe would be a pivotal threshold for confirming a sustained upward trend. A close above this level could reinforce the likelihood of continued buying pressure in the second half of 2025.

From a technical perspective, the daily chart for DOT/USD is drawing attention. The price remains within the bullish confines of the July 2025 range, forming a flag pattern. Local support levels have been identified at $3.5 and $4, while resistance is expected around $4.5. If buyers regain control and push the price above $5, the coin could see a move toward $5.5, outperforming several top-performing meme coins in the market.

An influential analyst on X has expressed strong conviction that Polkadot is on the cusp of a major breakout, potentially reaching as high as $23. The analyst notes that DOT has recently found firm support above $3.5 and that consolidation in the current range suggests a high probability of a breakout above the descending wedge. A successful move would signal that buyers have taken control, potentially propelling the price to new highs in the coming months.

Meanwhile, the regulatory landscape remains a critical factor for Polkadot's future. The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale's application for a spot Polkadot ETF, extending the review period to November 8. The proposed ETF would allow investors to gain exposure to DOT in a regulated environment while retaining staking rights, a feature distinguishing it from other spot ETFs. However, the SEC has only approved two spot crypto ETFs as of September 2025, and BlackRock has indicated that it will take time before issuing similar products for altcoins like Polkadot and XRP.