Polkadot (DOT) appears to be regaining bullish momentum after successfully retaking a crucial support level at $3.96, according to CoinDesk Research’s technical analysis. The token experienced a brief 7% correction, dropping from $4.038 to a low of $3.753, but quickly found strong support and rebounded strongly. Currently, DOT is trading around $3.97, reflecting a slight 1.3% dip from recent highs.
Market-wide, the CoinDesk 20 index was down by 0.8% at the time of writing, recovering from a sharp decline amid ongoing market turbulence driven by political tensions between President Donald Trump and Elon Musk.
Technical insights reveal that DOT’s price correction involved a 7.06% drop, forming an ascending channel after bottoming out at $3.75. This movement allowed DOT to reclaim the $3.95 support zone with increasing buying pressure, backed by a volume spike of over 5.9 million during the correction and a recovery volume of 1.7 million.
Key resistance levels are now established between $3.98 and $4.00, with immediate support solidified at $3.95. The formation of a higher low pattern following the brief pullback confirms bullish sentiment, and the successful defense of the psychological $3.96 level reinforces the narrative of recovery.
Overall, these technical signals suggest that Polkadot is poised for further upward momentum, making it an exciting asset to watch in the evolving crypto landscape.
