- Liquidation and Open Interest underscored growing bullish momentum as DOT climbed 2.04%.
- Consistent development activity and moderate social dominance provided solid fundamentals for Polkadot’s trajectory.
Polkadot [DOT] was witnessing an exciting shift in momentum, with liquidation data reflecting growing confidence among bullish traders.
In the past 24 hours, $226K in short liquidations compared to $130K in longs highlights increasing pressure on traders betting against DOT.
Consequently, this dynamic is helping push the price upward, trading at $6.04 at press time, a 2.04% gain at press time.
This surge in liquidations was a strong indicator that bullish sentiment was gaining traction, which could fuel further upward movement.
Source: Coinglass
Social dominance shows consistent engagement
Additionally, Polkadot’s Social Dominance, at 0.5228% at press time, remained steady but moderate. While the metric has pulled back from recent peaks, it still signaled healthy engagement from the crypto community.
However, a significant increase in this metric could act as a catalyst for broader attention and potentially drive DOT toward higher levels.
For now, consistent mentions ensure DOT stays relevant among top-tier projects, but a spike in social buzz will be necessary for a strong breakout.
Source: Santiment
Open Interest highlights rising trader activity
Polkadot’s Open Interest has jumped by 5.09% to $325.34M, underlining increasing activity in the derivatives market.
This rise suggested that traders were positioning themselves for potential price swings, which often accompany moments of growing market confidence.
Furthermore, the combination of short liquidations and rising open interest adds weight to the bullish momentum narrative. Therefore, all eyes remain on how DOT performs as it approaches key resistance levels.
Source: Coinglass
Innovation remains steady
Polkadot’s development activity, measured at 37.18, showed a slight cooling from previous highs but still reflected a strong and active ecosystem.
Although there has been a minor decline, the consistent focus on development ensures Polkadot remains competitive within the blockchain space.
Therefore, maintaining or increasing these levels will be crucial for long-term confidence, as continuous innovation often drives greater adoption and trust among investors.
Source: Santiment
Read Polkadot [DOT] Price Prediction 2024-2025
Will DOT climb higher?
The surge in short liquidations and Open Interest indicates strong upward momentum, while steady social engagement and development activity provide solid fundamental backing.
If DOT maintains its current pace and breaks key resistance levels, it could trigger a larger rally in the coming weeks. For now, the data points to a strong probability of higher levels being reached.
