Polkadot leads the altcoin market: Breaks the triangle pattern, activates a new altcoin season?

Polkadot (DOT) leads the top 100 cryptocurrencies by market capitalization, recording nearly a 24% increase over 24 hours. Trading volume surged 530%, reaching $855 million, indicating strong and aggressive market participation during this rally.

This growth coincides with a shift in altcoins and a revival of momentum across the industry.

Polkadot: Breaking the Triangle Pattern, Triggering a Strong Uptrend

The price chart clearly confirms DOT’s superior strength compared to other altcoins. DOT’s price broke out over 41%, from a support level of $1.235 within the triangle pattern, reaching a peak of $1,750.

However, after this impressive rally, the price stalled and peaked at $1,750 before showing signs of correction.

Before the breakout, DOT experienced a nearly two-month accumulation phase, with trading volume gradually decreasing. In the past 24 hours, trading volume increased to 77.51 million DOT, a 28% rise from the previous session.

This expansion coincides with an increase in Bollinger Band width, signaling rising volatility.

Source: TradingView Currently, the price is oscillating around the old resistance level of the triangle pattern, now acting as a support zone for testing. If the uptrend continues, DOT could challenge the $2.00 level. Conversely, if the price structure fails to hold, DOT risks a correction back to the 50% retracement level of the recent rally.

The Bigger Picture: New Momentum for the Altcoin Season

From a broader perspective, DOT’s rally has sparked lively discussions about a new altcoin season. According to Whale Factor analysis, the altcoin market is entering a strong growth phase. Other coins like Aptos (APT) and Filecoin (FIL) are also trending upward, following DOT’s performance.

The Altcoin Season Index has risen from 22 to 35 this month, indicating that DOT could be initiating a new altcoin season. However, to confirm the start of a true altcoin season, this index needs to rise further to the 75 threshold.

Fundamental and Network Activity Analysis

On the fundamental side, Polkadot shows positive signals. One key factor is the planned governance mechanism change scheduled for March 2026, which is expected to boost the price rally.

Specifically, Polkadot will reduce its annual issuance by 50%. This inflation cut could exert strong upward pressure by tightening circulating supply. Additionally, the project is considering implementing a total supply cap, which could significantly benefit DOT’s long-term value.

Source: Polkadot Subscan However, network activity presents mixed signals. The number of accounts and DOT holders has reached a record high, surpassing 50 million accounts currently. This reflects increasing confidence in Polkadot’s long-term potential.

Source: Polkadot Subscan On the other hand, on-chain daily transaction volume has declined sharply compared to mid-February. On February 16, this metric peaked at 1,030 transactions, but now it’s only 106. This indicates a significant drop in network usage, despite slight signs of recovery.

Conclusion

Fundamentally, March could be a breakout month for Polkadot as market sentiment improves. However, the recent rally might just be a correction within a bear market. If this scenario unfolds, expectations for an altcoin season could be undermined. Conversely, if DOT maintains its upward momentum, an altcoin season could officially begin, ushering in an active period for the crypto market.