DOT Breaks Key Range, Bulls Target $1.75

• DOT breakout above consolidation confirms short-term bullish shift
• Open interest reset signals cleaner setup for next directional move
• Spot outflows persist, but distribution pressure shows signs of easing

Polkadot has entered a decisive phase after weeks of compression, as buyers push DOT/USD into a fresh expansion on the 1-hour chart. The pair cleared a stubborn consolidation band and quickly shifted momentum in favor of bulls. Consequently, short-term structure now favors continuation, provided key supports remain intact.

Breakout Signals Trend Reversal

DOT rallied sharply from the $1.27 to $1.30 base, building strong upward momentum. Price then broke above the $1.35 to $1.40 consolidation range. Moreover, bulls reclaimed the 200 EMA, confirming a shift from range-bound trading to directional expansion.

The rally accelerated toward the $1.75 swing high, reflecting aggressive demand. Additionally, the $1.63 to $1.65 zone now stands as the first supply barrier. If buyers absorb that area, price could retest $1.75 quickly.

However, structure remains sensitive to pullbacks. The $1.55 level aligns with the 0.618 Fibonacci retracement and short-term support. Hence, bulls must defend this level to maintain momentum.

A drop below $1.50 would weaken the structure. Consequently, price could revisit the $1.42 to $1.46 region, where the EMA cluster and prior breakout zone converge.

Open Interest Resets After Heavy Liquidations

Derivatives data shows dramatic shifts in participation during recent volatility. Earlier rallies pushed open interest above $600 million, signaling heavy leveraged positioning. Subsequently, sharp liquidations erased a large portion of that exposure.

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Another surge later lifted open interest near $650 million. Significantly, that spike occurred while price trended lower, suggesting rising short exposure. Traders appeared to build bearish bets into weakness.

Currently, open interest has compressed near $253 million as price trades around $1.67. Moreover, reduced leverage often precedes stronger directional moves. Lower positioning can create room for a cleaner breakout.

Spot Flows Show Lingering Distribution Pressure

Spot flow data paints a more cautious backdrop. Since May, net outflows have dominated overall activity. Although July and August recorded brief inflow spikes, sellers maintained control.

September and October marked the heaviest distribution phases. Consequently, large outflow spikes coincided with accelerated price declines. Selling pressure intensified during those months.

Through November and December, outflows persisted but eased slightly. Additionally, January and February show milder negative flows. This pattern suggests distribution continues, yet at a slower pace.

Technical Outlook For Polkadot (DOT) Price

Key levels remain well-defined heading into late February:

• Upside levels: $1.63–$1.65 (local supply zone), $1.75 (recent high), and $1.80 as potential extension. A decisive breakout could push toward $1.90 and $2.00.

• Downside levels: $1.55 (0.618 Fib / short-term support), $1.50 (0.5 Fib), and $1.42–$1.46 (EMA cluster + prior breakout zone).

• Resistance ceiling: $1.75–$1.80 acts as a critical barrier. Holding above $1.55 is key for medium-term bullish continuation.

The technical picture suggests DOT is consolidating after a strong breakout from the $1.35–$1.40 range. Price is compressing above short-term support while buyers and sellers gauge the next move. Momentum indicators and open interest trends hint at a potential expansion phase, where a decisive move could trigger significant volatility in either direction.

Will Polkadot Continue Higher?

DOT’s near-term trajectory depends on whether bulls can defend $1.55 and maintain buying pressure toward $1.63–$1.65. Strong follow-through above these levels could test $1.75 and $1.80. Conversely, a break below $1.50 risks a pullback toward the $1.42–$1.46 accumulation zone.

Spot flow data and derivatives positioning indicate reduced leverage, suggesting a base-building phase before the next directional expansion. Consequently, a measured accumulation could support a sustained rally, but aggressive short-term movements remain likely if price tests key resistance or support zones.

For now, DOT trades in a pivotal area, where technical compression, Fibonacci support, and open interest dynamics will define the next leg. Bulls need conviction and strong inflows to maintain momentum, while failure to hold support could expose DOT to deeper retracement levels.

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