Polkadot Price Reversal Traps Short Sellers in Sharp Move

Polkadot's price has seen a significant reversal after what initially looked like a breakdown. The cryptocurrency broke below an ascending trendline but quickly recovered, leaving short sellers in a difficult position.

The liquidation data supports this sharp move, with shorts accounting for $11.44 thousand of the total $12.05 thousand in liquidations over the past hour. This kind of skew toward short liquidations is often seen when a trap-and-squeeze pattern appears on the chart.

For Polkadot to hold its bullish momentum, it needs to stay above 0.9090. If it does, the next resistance target is 0.9782, roughly 7.7% above the current price. On the other hand, if Polkadot breaks and closes below 0.8059, it could undo the bullish read and open the door toward 0.7429.

With open interest above $1.5 billion relative to its size, leverage is playing a significant role in these swings. A move like this can just as easily reverse again if fresh sellers step back in near resistance, making it crucial to treat 0.9090 as a level to confirm rather than assume.