Polkadot – Examining odds of a pullback after DOT’s 30% surge
Polkadot has hit a key level for the sixth time, repeating its bullish history.
Key takeaways
Polkadot surged 30%, reclaiming key support amid bullish sentiment. With RSI at 73 and Open Interest at $483 million, at press time, a short-term correction may precede a potential rally toward $5.40.
With the recent shift in market sentiment, Polkadot [DOT] has successfully reclaimed a key support level it lost during the tariff war.
Adding to the optimism, the asset has surged by an impressive 30% in two weeks, suggesting a potential repeat of its historical bullish pattern from the current level.
Polkadot is at a key reversal area
Historically, this level has always appeared to be a top choice for investors and traders due to its price reversal history.
According to the TradingView chart, since October 2023, the DOT price has reached this level more than six times, and each time, it has recorded a notable price surge.
Given the current market sentiment, this appears to be just the beginning of another potential surge, which might explain the growing attention from traders and investors.
80% of Binance traders bet long on DOT
The on-chain analytics tool CoinGlass reveals that traders betting on the long side now outnumber those taking short positions.
At press time, Binance’s DOT/USDT Long/Short ratio reached its highest level since June 2025 and was hovering around 3.92, indicating that for every 3.92 traders going long, there is only one trader interested in a short position.
This metric further shows that 79.68% of traders were betting on long positions, while 20.32% were on short positions.
At press time, the major liquidation levels where traders have shown interest were $4.32 and $4.48.
At these levels, traders have built $4.23 million worth of long positions and $1.09 million worth of short positions, as reported by the on-chain tool CoinGlass.
DOT Open Interest surges as bulls dominate
At the time of writing, DOT prices stood at $4.29, having dipped 5.06% over the past 24 hours.
Despite this, investor and trader participation remains high during the same period. CoinMarketCap reports that DOT’s 24-hour trading volume has surged by 48% compared to the previous day.
Not just that, so far, DOT’s Open Interest also surged by 4.50% to $483.36 million, indicating notable capital inflows into the asset, which suggests that DOT may continue its upward momentum.
RSI signals overbought, pullback incoming?
AMBCrypto’s technical analysis reveals that DOT is in an uptrend. However, after a non-stop 30% price increase over the last nine days, the asset appears overstretched.
This is also reflected by the Relative Strength Index (RSI), which stood at 73, as of writing, indicating that the asset was in the overbought zone and there is a strong possibility it could face a correction before another rally begins.
Based on recent price action, if DOT holds above the $3.90 level, there is a strong possibility it could see another 20% price increase and potentially reach the $5.40 level in the future.
