Polkadot (DOT) Targets $10 If It Breaks Above Descending Trendline

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

Traders could seize small trades when the market temporarily touched the $4.25 support level.

Upcoming news and general market sentiment will determine the next market behavior.

There exists an immediate resistance zone formed by the descending trendline, which spans from $6.94 to $7.63.

A successful breakout of DOT at this resistance level might trigger a new uptrend toward $10.00.

Strategically waiting for another retest before making a breakout verification appears to be a sound option.

Price activity remains uncertain because every development in the market leads to potential price adjustments.

Monitoring the essential price levels should form part of traders’ active strategy because market conditions might change unexpectedly.

Number of Active Addresses on the Polkadot Relay Chain

During the past year, the Polkadot Relay Chain witnessed large changes in its active address count.

When the price of DOT went up, so did the number of people using Polkadot platforms.

This is because market perception and protocol activities are strongly linked.

Long-term adoption needs more than just price actions as an incentive.

The Polkadot Relay Chain experienced 12,500 active addresses in March 2024.

That was before activity diminished steadily throughout the year until it reached 5,000 addresses by July 2024.

Activity levels stayed below 15,000 active addresses during the first months before reaching that threshold in November 2024 while DOT price rose strongly.

The platform reached its maximum address count before entering a descending phase.

This allowed the numbers to settle between 5,000 to 7,500 addresses during early 2025.

Most Polkadot activity stems from speculatively driven activities according to this data trend.

The ecosystem will require better incentives than price movement increases if it wishes to gain new users along with sustaining platform usage.

The system requires innovative applications together with better user experiences and real-world adoption to succeed in the market.

The network requires growth beyond price sentiment because price sentiment alone cannot support lasting growth since the user base needs to stay interested during all market conditions.

DOT’s Open Interest Increases

The rising level of open interest on Polkadot indicates that a potential strong market sentiment exists.

The rising open interest metrics of active futures contracts now exceed $1 Billion because market participation has increased.

The data shows rising trader participation, which indicates trading positions to capitalize on a future price rise.

The price movement of Polkadot could replicate historical patterns since increased market interest directly drives price appreciation.

The Coinglass platform shows Polkadot’s open interest moving beyond $800 Million and then reaching its all-time high of $1.2 billion.

Market activity intensified because trading volume dramatically increased at the same moment when open interest reached this peak.

A pattern of rising prices has historically appeared after this kind of market movement.

During its previous price rally, Polkadot’s value exceeded $5.0 while open interest kept increasing.

Present market prices for DOT stand at $4.37 despite climbing liquidity and strengthening market sentiment, which suggests another potential price increase.

In terms of market analysis, it is observable that joint increases in open interest and volume typically result in positive bullish price action.

An improving investor sentiment could drive the market to sustain a continuing positive trend.

The ongoing trading pattern indicates Polkadot will likely challenge previous highest points, thus generating profitable trading chances for market participants.