Polkadot has rallied 18.9% since August 31, pushing the token back toward the $1 resistance level it last held in June. A 150% jump in daily network activity accompanies the move, but DOT remains inside a downtrend dating back to June 2025, leading some traders to treat the bounce as a profit-taking opportunity rather than a reversal.
Polkadot has rallied 18.9% since Monday, August 31, retesting the $1 resistance level it last traded above in June. The move comes alongside a sharp jump in network activity, yet the token remains stuck inside a longer downtrend.
Network activity jumps, but ETF news still lingers
Daily network activity on Polkadot spiked 150%, with much of the increase concentrated within the Polkadot Products Devnet environment. That jump is a positive signal for the network, though it might not translate into a sustainable price trend. Sentiment had also taken a hit in August, when Grayscale withdrew its proposed Polkadot ETF, a decision that weighed on the altcoin afterward.
A downtrend dating back to June 2025
The weekly chart shows DOT has been in a downtrend since June 2025, when it first slipped below the $3.75 long-term support. For the weekly structure to change, the token needs a weekly close above $1.38, with the $1 supply zone still standing in the way of the bulls. Long-term capital flows remain dominated by sellers, with the Chaikin Money Flow reading at -0.16, a level that has stayed low throughout the year.
Daily momentum turns bullish, but caution rules
On the daily chart, the picture looks different. DOT has broken above the downtrend's prior lower high of $0.88, and the Awesome Oscillator points to strong upward momentum. The daily Chaikin Money Flow reading of +0.21 also points to sizeable buying pressure. Still, with the $1 and $1.38 resistance zones unbroken, swing traders may want to use the rally to take profits and stay sidelined until a true recovery is confirmed.
Source: AMBCrypto
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