Polkadot Breaks Out of Bearish Trend, $2 Target in Sight

Polkadot (DOT) price has broken out of its bearish trend after falling by 98.4% from its all-time high in March.

The price is currently trading near the descending trendline, and a breakout could attract buyers and lead to a decent bullish trend.

If DOT clears the trendline with strong volume backing, it could move toward the 200-day EMA, making a push toward $2 a realistic medium-term target.

However, the recent rally is happening on the back of heavy leverage, and both July's long squeeze and August's short squeeze show that DOT's recent moves have been amplified by derivatives positioning rather than pure spot demand.