Polkadot
bullish momentum has potentially returned, after the token retook an important support level at $3.96, according to CoinDesk Research’s technical analysis model.
DOT experienced a 7% correction from $4.038 to a low of $3.753 before establishing “strong support” and rebounding strongly, according to the model.
The token is currently 1.3% lower, trading around $3.97.
The broader market gauge, CoinDesk 20 index, was 0.8% lower at publication time, also recovering from a sharp move lower amid a tussle between President Donald Trump and Elon Musk.
Technical analysis highlights:
- DOT-USD experienced a 7.06% correction from $4.038 to a low of $3.753 before establishing strong support.
- Price formed an ascending channel after the correction, reclaiming the $3.95 level with increasing buying pressure.
- Significant volume spike of over 5.9 million during the correction phase, followed by 1.7 million volume during the recovery period.
- Key resistance established at $3.98-$4.00 zone with immediate support at $3.95.
- Higher low pattern formed after brief pullback, confirming bullish momentum
- Psychological $3.96 level successfully defended, reinforcing recovery narrative.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.