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- Polkadot’s break above the descending channel highlighted a potential upside of 56.86% to $11.96.
- Strong short liquidations and stable social metrics are driving DOT’s bullish momentum.
Polka dot [DOT] has received significant attention after breaking a long-standing descending channel, indicating a strong trend shift.
At the time of writing, DOT was trading at $7.55, up 21.94% in the last 24 hours. The market capitalization has increased to $11.49 billion, while the 24-hour trading volume has increased by 102.86% to $1.40 billion.
This breakout has placed DOT at a critical juncture as it approaches a key resistance level at $7.71.
What does the outbreak mean for DOT?
Polkadot’s break above the descending channel has led to optimism about its upward trajectory. DOT faces immediate resistance at $7.71, a level that will determine whether the rally continues.
If this resistance is overcome, the next target is $11.96, offering a potential upside of 56.86%.
From a technical perspective, the recent moving average (MA) reinforced bullish momentum. Moreover, the Relative Strength Index (RSI) stood at 76.8, indicating strong buying pressure.
However, traders should keep a close eye on the RSI as levels above 70 often indicate that the asset is close to overbought, which could lead to a pullback in the short term.
Source: TradingView
Social involvement and dominance remain stable
Although the DOT outbreak has attracted attention, social figures have remained subdued. Polkadot’s social volume at the time of writing was 174, and its social dominance was 0.52%.
These numbers showed stable engagement, highlighting continued community interest without dramatic spikes.
Consequently, this steady participation could support gradual, organic price growth rather than short-lived speculative activity.
Source: Santiment
Liquidation data fuels the rally
Polkadot’s bullish move has been significantly impacted by liquidation activities. More than $4.99 million in short positions have been liquidated in the past 24 hours, compared to just $334,600 in long positions.
The imbalance has led to a short squeeze, forcing bearish traders to close their positions, boosting DOT’s price momentum.
This has created additional upward pressure, pushing DOT closer to its resistance level.
Source: Coinglass
Read Polkadot [DOT] Price forecast 2024-2025
Can DOT reach $11.96?
Polkadot’s breakthrough, combined with strong trading volume, bullish technicals and stable social metrics, points to continued upward momentum.
If DOT can decisively break above $7.71, a move towards $11.96 becomes very likely. Therefore, current numbers suggest that Polkadot’s rally is well supported and poised for further gains in the near term.