Polkadot (DOT), the multichain network built to let independent blockchains exchange assets and data, jumped more than 13% over the past 24 hours, outpacing a broader crypto market rally in which short liquidations — forced buybacks triggered when leveraged bearish positions are unwound as prices rise — rose 17% to roughly $272 million.

The surge, however, is not being driven solely by market-wide strength. Elevated network activity, capital inflows through the treasury and exchange-traded funds, and a bullish technical setup have all contributed to the move.

Network activity doubles in September

Monthly Active Addresses on Polkadot doubled in September, climbing from 40,000 in August to a peak of 82,900 before easing back to 80,300. Usage metrics like these are watched closely because they reflect demand reaching the network itself — where DOT is used for staking, governance and transaction fees — rather than activity confined to exchanges.

Trading activity has expanded in step. Monthly token trading volume rose 116% to $4.70 billion, and daily transactions have stayed elevated, in line with earlier readings — averaging 238,000 per day and totaling 7.20 million over the past 30 days, according to Token Terminal.

Capital flows turn positive

Exchange-traded fund flows are among the most closely watched gauges of institutional demand, since the vehicles give investors token exposure without direct custody. On the capital side, flows flipped this month on a net basis. The 21Shares Polkadot ETF (TDOT) recorded net inflows of $663,000 after two months of dormancy, per SoSoValue. That pointed to institutions gradually returning to the fund — a trend that could accelerate as the SEC delivers greater regulatory clarity on tokenization.

Treasury activity draws attention for a different reason: Polkadot's on-chain treasury funds ecosystem spending such as grants and development proposals. Treasury net flows also turned positive after five negative days this week. Over the past 24 hours, net inflows surpassed $2.04 million — about ten times the size of the week's other positive day. On a weekly basis, however, treasury net flows remain negative at around $1.59 million.

Can bulls flip $1.30 into support?

Technically, DOT has respected a rising trendline support on the daily timeframe. The price has bounced off this support for a third time, and the token now appears to be heading toward $1.30.

Indicator readings point to building momentum. Bollinger Bands are expanding, signaling that volatility is increasing, while the Stochastic RSI, at a reading of 30, is rebounding from oversold territory — a shift that hints at seller exhaustion.

If bulls can flip the $1.30–$1.44 zone into support, the next objectives would be $1.70 and levels above $2. Conversely, a breakdown of the slanting trendline would invalidate the uptrend, particularly if the $0.945 horizontal support — the previous higher high in the ongoing uptrend — gives way. Until that happens, Polkadot's market structure remains bullish, as the pattern of higher highs and higher lows stays intact.

In short, Polkadot's 13% rally over the past 24 hours has been underpinned by strong network activity, returning capital inflows and a bullish outlook, with rising trendline supporting further appreciation unless price breaks below it. From here, the markers to watch are whether monthly active addresses hold near their elevated range, whether weekly treasury flows recover from their negative footing, whether TDOT inflows continue — and, on the chart, whether $1.30 flips into support or the trendline gives way. The SEC's moves on tokenization add a further regulatory thread to track alongside the price action.

Source: CryptoNewsNet