$DOT Surges 19% But Long-Term Downtrend Remains Intact

Polkadot's price has surged 19% in just one week, with its altcoin reaching for the psychological $1 resistance level. The latest rally comes after a spike in daily network activity, which saw a 150% increase since Monday, August 31st. This surge was driven largely by activity within the Polkadot Products Devnet environment.

While this increase is positive for the network, it's uncertain whether it will result in a sustainable price trend for the token. In August, news that Grayscale would not be proceeding with its proposed Polkadot ETF product caused negative sentiment around the altcoin.

Polkadot's long-term investors must remember that the current price move is taking place within a broader downtrend. Since June 2025, $DOT has been in a bearish trend, slipping below the $3.75 long-term support. The weekly chart shows that the latest price bounce needs to close above $1.38 to indicate a change in the weekly structure.

Despite this, traders are calling for caution and suggesting that swing traders take profits while they can. The Commodity Money Flow (CMF) reading of -0.16 at the time of writing indicates that long-term capital flows remain dominated by sellers.