- DOT formed a cup-and-handle pattern, reclaiming $4.00 with strong volume.
- Liquidations and rising global liquidity align to support a move toward $5.00.
Polkadot [DOT] has reignited bullish momentum, rising sharply from below $3.75 and flipping the $3.85 level into solid support.
The asset is carving out a classic cup-and-handle pattern above its key demand zone, signaling a potential trend continuation. At the time of writing, DOT traded at $4.11, marking a strong 9.21% daily increase.
This move follows a decisive market structure shift and aligns with growing technical strength.
Therefore, the angle will be to examine whether DOT’s renewed structure, combined with rising volume and improving macro conditions, can sustain its push toward the $5.00 resistance.
Source: TradingView
Are bulls gaining control?
DOT’s derivatives data continues to show aggressive long positioning. Trading volume surged by +45.85% to $494.41 million, while Open Interest jumped +12.89% to $376.11 million.
These simultaneous increases in both metrics and price suggest fresh capital entering the market rather than profit-taking.
This behavior indicates that traders are betting on continuation rather than reacting to short-term spikes. Therefore, the bullish sentiment in derivatives adds a layer of confirmation to DOT’s current technical setup.
Source: Coinglass
Besides, the latest price breakout coincided with a wave of short liquidations. Over $354.86K in short positions were wiped out, compared to just $48.19K in longs.
This data shows that sellers were caught off guard and forced to exit, fueling additional upside.
Furthermore, Binance’s liquidation map reveals a thick layer of short pressure between $3.75 and $4.10. DOT’s climb through this zone triggered stop losses and cleared resistance.
As a result, the path toward $5.00 now appears less obstructed and more technically achievable.
Is macro momentum lifting DOT?
Beyond immediate price action, macro liquidity trends are also supporting the bullish narrative. The M2 Global Liquidity Index has climbed to 97.3, reflecting increased capital flow into risk assets.
Historically, DOT has moved in tandem with this index.
Therefore, the current liquidity expansion offers favorable conditions for DOT to rally further. Moreover, this external confirmation strengthens the argument that DOT’s rise is not isolated but part of a broader market shift.
Source: TradingView
Conclusion
Polkadot’s bullish breakout is no fluke. Technical momentum, liquidation-driven acceleration, and macro liquidity alignment point to further upside.
Traders continue to add long positions, and short pressure has already been flushed out.
As a result, the $5.00 resistance now stands as the next critical level to watch. If buying interest holds steady, DOT looks poised to test—and potentially breach—this key psychological barrier in the near term.