Polkadot (DOT) Market Analysis

The trading price of Polkadot (DOT) maintains a support level at $4.50 as traders observe the $4.25 bottom level.

Traders could execute small trades when the market briefly touches the $4.25 support level.

Upcoming news and overall market sentiment will dictate future market behavior.

Immediate Resistance

An immediate resistance zone created by the descending trendline exists, ranging from $6.94 to $7.63. A successful breakout at this level may initiate a new uptrend towards $10.00. Waiting for another retest before confirming a breakout seems prudent.

Price activity remains uncertain as every market development can cause price adjustments. Monitoring key price levels should become integral to traders’ strategies.

Active Addresses on the Polkadot Relay Chain

Over the past year, the Polkadot Relay Chain has experienced significant fluctuations in its active address count. As the price of DOT increased, so did the number of users on Polkadot platforms due to the strong link between market perception and protocol activities.

Key Metrics

• March 2024: 12,500 active addresses
• July 2024: Diminished to 5,000 addresses
• November 2024: Activity returned to 15,000 addresses during a strong price rise.

The platform reached its peak active address count before entering a decline, stabilizing around 5,000 to 7,500 addresses by early 2025. Most Polkadot activity appears to be driven by speculation.

To sustain and gain new users, the ecosystem requires incentives beyond price movements along with innovative applications and better user experiences.

DOT’s Increasing Open Interest

The rising open interest in Polkadot suggests a strong market sentiment. Open interest metrics for active futures contracts now exceed $1 Billion due to increased market participation. This indicates that traders are positioning themselves for potential price increases.

According to Coinglass, Polkadot’s open interest surpassed $800 Million and peaked at $1.2 Billion. Market activity heightened in tandem with this peak in open interest, historically leading to rising prices. Despite current market prices for DOT at $4.37, improving liquidity and sentiment suggest the likelihood of another price increase.

Analyzing past trends, joint increases in open interest and volume often result in bullish price action, indicating a potentially positive trend for Polkadot. The current trading pattern implies DOT may challenge its prior highs, presenting profitable trading opportunities for participants.