Polkadot's native token DOT has experienced a dramatic price surge, climbing over 20% in 24 hours to trade around $1.53, significantly outpacing the broader crypto market's gains. The rally is primarily driven by anticipation for the network's first-ever "halving," a scheduled 50% reduction in inflation set for March 14, 2026. This event is creating bullish social sentiment, with many viewing it as the start of a new "scarcity era" for DOT.
Adding fuel to the rally are rumors of potential Polkadot ETF filings by institutional firms like Grayscale and 21Shares, which are further exciting investors. The surge is also part of a broader sector-wide rotation into altcoins, evidenced by the Altcoin Season Index rising over 35 points in the past week as traders seek gains beyond Bitcoin.
From a technical perspective, DOT has broken decisively above a multi-month descending channel and its 30-day simple moving average at $1.43, signaling a structural shift. Trading volume has jumped over 67% to $235.76 million, confirming strong buyer participation. Momentum indicators like the RSI, currently around 52, suggest there is room for the rally to continue before the asset becomes overbought.
Analysts note that holding above the $1.43 breakout level is crucial for sustaining momentum. Immediate support lies at $1.35, with a secondary zone between $1.25–$1.29. If the bullish trend holds, the next key resistance levels are seen at $1.60–$1.71, $1.97, $2.36, and $3.03. However, a failure to hold above $1.5 and a break back into the previous channel could invalidate the breakout, with critical support then at $1.13.
