Polkadot Price Rises After Key Breakout Retest
Polkadot (DOT) price climbed on Friday, trading above $4.65. This followed a successful retest of a key breakout point earlier this week. The token’s fixed supply of 2.1 billion DOT adds to its scarcity appeal. Rising open interest and trading volumes also support a bullish outlook. Technical analysis suggests the rally could continue, with a target price of $6.52.
Fixed Supply and Market Activity Boost Polkadot
On Sunday, the Polkadot community passed Resolution 1710. About 81% of voters agreed to set a hard cap of 2.1 billion DOT on the network’s supply. This change limits the maximum supply, replacing the previous infinite supply model. The current total supply is around 1.522 billion DOT. New DOT issuance will reduce every two years starting March 14, known as Pi Day.
This supply cap supports scarcity and predictability for DOT. It also lowers annual token emissions, which is positive for long-term value.
Market data shows rising interest in Polkadot derivatives. Futures open interest (OI) on exchanges increased from $574.93 million on Tuesday to $685.92 million on Friday. This is the highest level since early December 2024. Higher OI means more money is entering the market, which may fuel the price rally.
Trading volume on the DOT network also surged. Santiment data recorded 658.34 million in volume on Friday, the highest since mid-July. Increased volume indicates strong trader interest and better liquidity, supporting a bullish trend.
Technical Outlook: Bulls Eye $6.52 Target
Polkadot broke above a symmetrical triangle pattern on September 10. This pattern formed between mid-May and mid-September. After the breakout, DOT rose over 6% in three days but then pulled back on Sunday. It retested the breakout point on Monday and rebounded, gaining 9.35% by Thursday.
As of Friday, DOT trades near $4.62. If the upward momentum continues, the price could reach the $6.52 target. This target is based on the height of the triangle pattern.
The Relative Strength Index (RSI) is at 65, above the neutral 50 level, showing growing bullish momentum. The Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover in early September, which remains active. This signals a likely upward trend.
If DOT pulls back, it may test support near Monday’s low at $4.10.
