Amid the wave of changes in market sentiment, Polkadot (DOT) has regained an important support level that was previously lost during heightened trade tensions.
Adding to investor confidence, DOT has surged by 30% in just the last two weeks, opening up expectations for a new price increase cycle, accurately reflecting the historical growth pattern from the current price zone.
Polkadot is at a crucial reversal zone
Price history shows this is a 'preferred' zone for investors, due to the frequent occurrence of strong reversals.
Data from TradingView shows that since October 2023, DOT has reached this price zone more than six times, each time accompanied by an impressive bounce.
In the context of improving market sentiment, many analysts believe that this upward momentum may only just be beginning – which also explains why this area is attracting strong interest from the investment community and professional traders.
80% of traders on Binance are Long on DOT
According to data from the on-chain analysis platform CoinGlass, investor sentiment is currently leaning heavily towards a bullish trend for Polkadot (DOT). The number of Long orders (betting on price increases) has significantly overshadowed Short orders (betting on price decreases).
As of the time of writing, the Long/Short ratio of the DOT/USDT pair on Binance has soared to 3.92 – the highest level since June 2025. This means that for every 3.92 traders choosing Long, only one chooses Short, reflecting strong confidence in DOT's potential for continued price increases.
Specifically, up to 79.68% of investors are betting on a bullish trend, while only 20.32% hold a contrary view.
Currently, the two price levels that traders are particularly focused on are $4.32 and $4.48 – where significant liquidation levels are concentrated. Here, the volume of Long orders reaches $4.23 million, while Short orders only amount to $1.09 million, according to statistics from CoinGlass.
DOT's open interest has surged as bulls dominate
As of the time of writing, DOT is trading around $4.29, down 5.06% in the past 24 hours. Although the price has decreased, investor and trader interest has not waned.
According to data from CoinMarketCap, the 24-hour trading volume of DOT has surged by 48% compared to the previous day – a signal indicating that market activity is picking up again. At the same time, open interest (OI) also recorded an increase of 4.50%, reaching $483.36 million. This figure shows that significant capital continues to flow into DOT, reinforcing expectations of a potential short-term recovery.
RSI warns of overbuying – is a correction imminent?
According to technical analysis from Bitcoin Magazine, DOT maintains a stable upward trend. However, after breaking out by 30% in just 9 days, signs of overbuying have begun to appear – a signal that the market may be entering a temporary pause.
The relative strength index (RSI) is currently at 73, indicating that DOT has entered the overbought zone and may experience a slight correction before establishing a new upward trend.
Nevertheless, if DOT can hold above the important support level of $3.90, the bullish outlook will remain. In a positive scenario, DOT could continue to climb an additional 20% and aim for the target price range of $5.40 in the near future.
