Bullish momentum returned to the larger crypto market over the last 24 hours. Among the notable movers was Polkadot (DOT) after the altcoin recorded strong gains during this period. 

Thanks to the same, at the time of writing, the crypto’s price was testing a key supply zone near $1.60. This level could define the next move as buyers tighten control in the derivatives market.

Market positioning shifts in favour of bulls

The number of long positions in the market doubled the number of shorts. At press time the token long/short ratio stood at 2.191.

This imbalance hinted at growing confidence among traders. It also highlighted that Polkadot’s participants may be betting on higher prices.

At the same time, Open Interest surged by $10 million.

Usually, a hike in Open Interest, alongside price gains, often means fresh capital entering the market. Such a finding also supports trend continuation in the meantime.

Funding rate shift adds to bullish case

Another key signal here is the funding rate. At press time, Polkadot’s weighted funding rate had turned slightly positive. In fact, it sat just above equilibrium at 0.0077%.

Such a shift usually alludes to improving sentiment. In this particular case, it meant that traders might be willing to pay a premium to hold long positions. This often happens during early stages of bullish expansion.

As a result, the current setup might present a window for accumulation for traders and investors who are willing to bag more orders.

Momentum builds near resistance

Finally, on the daily chart, the token’s price action seemed to be approaching a critical phase. The strong supply zone at around $1.60-level might act as the next price barrier for market’s opportunistic bulls.

Historically, such zones attract selling pressure. Therefore, a breakout will require sustained buyer strength.

Momentum is already building too. However, continuation will depend on whether buyers maintain dominance or not. 

A successful break above this level could open the door to higher liquidity zones.

What is ahead for Polkadot?

Put simply, the altcoin’s market structure has been turning constructive. Buyer dominance is rising, Open Interest is expanding and Polkadot’s funding sentiment also flipped positive.

If these factors persist, DOT could attempt a breakout. Failure to sustain pressure, however, may lead to a short-term rejection.

Final Summary

• Polkadot’s price tested the $1.60 resistance as long positions doubled shorts in the market.
• Open interest jumped by $10M while funding turned positive, signaling growing bullish sentiment and a potential accumulation phase.

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Author: Kelvin Murithi