According to reports from AMBCrypto, Polkadot [DOT] has surged by more than 13% in the past 24 hours, significantly outperforming the broader cryptocurrency market. The rally comes as the total crypto market experiences a broader uptrend, with short liquidations increasing by 17% to around $272 million. However, DOT's surge is attributed to factors beyond just market-wide strength, with high network activity, capital inflows through treasury and ETFs, and bullish technical indicators driving the momentum.
As reported by AMBCrypto, Polkadot's Monthly Active Addresses have experienced significant growth, doubling from 40K in August to a high of 82.9K in September, though figures have since retraced to 80.3K. The monthly token trading volume has shown even more dramatic growth, increasing by 116% to hit $4.70 billion. Daily transactions continue to remain elevated, averaging 238K with a total of 7.20 million transactions over the past 30 days according to Token Terminal data.
According to AMBCrypto, capital flows have turned positive this month on an overall scale. The 21Shares Polkadot ETF [TDOT] recorded net inflows of $663K after two months of dormancy, indicating institutions were gradually returning to buying TDOT. Additionally, Treasury net flows turned positive after staying negative for 5 days this week, with net flows surpassing $2.04 million in the past 24 hours, 10 times bigger than the other positive day of the week. However, weekly treasury net flows remain negative at around $1.59 million.
As reported by AMBCrypto, Polkadot is respecting a rising trendline support on the daily timeframe, having bounced off the support for the third time. The altcoin appears to be headed toward $1.30, with the Bollinger Bands expanding to indicate increasing volatility. The Stochastic RSI with a reading of 30 is rebounding from oversold territory, suggesting seller exhaustion. A breakdown of the slanting trendline would invalidate the uptrend, especially losing the $0.945 horizontal support level.
According to AMBCrypto, the market structure of Polkadot remains bullish unless the current pattern of higher highs and higher lows is lost. A successful flip of the $1.30-$1.44 zone into support would expose levels above $2, while maintaining the current trendline support. The analysis suggests that unless the price breaks below the current trendline, the bullish outlook remains intact despite the recent retracement from September highs.
