According to reports from AMBCrypto, Polkadot [DOT] has experienced a significant 14% rally in recent trading, building on the earlier 18.9% rally since Monday, August 31st. The altcoin has now tested the psychological $1 resistance level for the first time since June, with the latest price movement accompanied by substantial network activity improvements. Polkadot's transactions climbed to over 13,800 during the past month, reaching a significant milestone according to Artemis data. This represents a 150% increase in daily network activity from previous levels, with Daily Active Users rising to roughly 2,700 during the same period, though this level remains moderate relative to the broader network.
Recent market data reveals significant liquidation activity across Polkadot's perpetual futures market, with short liquidations reaching $39,500 from September 8th start and long liquidations totaling $29,130 during the same period. Over a 24-hour period, short liquidations reached $575,190 compared with $454,490 in long liquidations, indicating modest imbalances that aligned with DOT's bullish price action. Open Interest rose 13% over 24 hours to roughly $203 million, demonstrating that traders committed more capital to DOT's perpetual contracts. The Open Interest-Weighted Funding Rate stood near 0.0095%, with positive Funding Rates indicating that long traders paid shorts, reflecting overall bullish positioning across the market.
As reported by AMBCrypto, the current price movement comes within a broader downtrend that has persisted since June 2025, when DOT first slipped below the $3.75 long-term support level. The altcoin's latest price bounce requires closing a weekly session above $1.38 to demonstrate a change in weekly structure. The $1 supply zone continues to present resistance for bullish momentum, with the CMF showing that long-term capital flows remain dominated by sellers at a reading of -0.16. In August, news that Grayscale would not be proceeding with its proposed Polkadot ETF product caused negative sentiment around the altcoin, adding to the challenging market conditions.
According to the analysis from AMBCrypto, while the weekly trend remains bearish, the 1-day timeframe signals a bullish shift with the downtrend's lower high at $0.88 having been breached. The Awesome Oscillator indicates strong upward momentum, while the CMF's reading of +0.21 highlights significant buying pressure. However, DOT remains in a long-term downtrend with the $1 and $1.40 overhead supply zones standing as potential resistance levels. The report suggests that holders and swing traders should consider taking profits during this rally while waiting for a true recovery. Despite the recent price uptick, the CMF's consistently low values throughout the year indicate that long-term capital flows remain firmly dominated by sellers. The current rally now sits between growing network participation and the leverage accompanying it, with rising Open Interest potentially increasing liquidation pressure during price reversals.
