Key Insights
- Polkadot price moved higher after the Kusama upgrade, but the broader trend remains weak after months of losses.
- Breakout lacks support, as volume and money flow show limited new buying interest.
- DOT price direction now depends on key levels, with strength holding above $2.02 and risk rising below $1.64.
Polkadot price moved higher today, surprising many traders. DOT jumped around 12% in one day after a major upgrade on Kusama, its closely linked network. The move lifted short-term mood across the Polkadot ecosystem.
Still, the bigger picture stays unclear. DOT is still down about 53.5% over the past three months. One strong day does not erase a long downtrend.
Traders now ask a simple question. Is this the start of something new, or just a short break in a weak market?
Kusama Upgrade Lifts Sentiment Around Polkadot Price
The trigger came from Kusama.
Kusama is Polkadot’s experimental network where new changes are tested before moving to Polkadot itself.
This week, Kusama rolled out a major runtime upgrade. The update reduced block times to under 2 seconds. It also improved smart contract support. Faster blocks mean quicker transactions. Better smart contracts help developers build more tools and apps.
Even though the upgrade happened on Kusama, not directly on Polkadot, traders often treat both networks as connected.
When Kusama improves, confidence can move over into the DOT price. That is what happened here.
This kind of reaction is common in crypto. A technical upgrade changes the story for a short time. Traders rush in. Price reacts fast.
But upgrades alone do not always change long-term price direction. For that, money flow and demand must follow. This is where the picture starts to look less strong.
DOT Chart Breakout Looks Good
On the price chart, DOT did something important. It broke out of an inverse head and shoulders pattern. This pattern often appears near market bottoms. It usually signals a possible change in direction.
Based on this pattern, DOT can move toward $2.27 if momentum continues. From current levels, that suggests roughly 13% more upside. This is why many traders started watching DOT again.
But price patterns need support. They need real buying pressure behind them.
On-balance volume, which tracks whether buyers or sellers control the move, is still drifting lower. That means volume is not rising with price. This often signals weak conviction.
Chaikin Money Flow, which measures whether money is entering or leaving an asset, is also below zero. When this indicator stays negative, it shows that large buyers are not fully committed yet.
Exchange balances also stay calm. There is no major rush of coins moving on or off exchanges. This suggests the rally is driven more by short-term sentiment than strong capital inflows.
In simple words, the chart looks promising, but the money does not fully agree yet.
Polkadot DOT Price Zones That Need Tracking
Because of this mixed setup, price levels matter more than headlines.
If DOT holds above $2.02, the upside case stays open. That level acts as a short-term base. Staying above it keeps the breakout structure alive.
If DOT slips below $1.76, the pattern starts to weaken. Buyers may step back. Confidence fades quickly in this zone.
A drop below $1.64 would likely end the rally attempt. At that point, the breakout would fail, and DOT could return to slow grinding price action.
For now, the move looks uncertain. The Kusama upgrade gave DOT a reason to move. The chart gave traders a setup to trade. What is missing is strong follow-through from volume and money flow. Until those improve, this Polkadot price rally might just be temporary.
Source: https://www.thecoinrepublic.com/2026/01/02/polkadot-price-jumps-12-after-kusama-upgrade-will-the-rally-last/
