Polkadot's DOT token has regained ground, climbing back to an important support level at $3.96, suggesting a resurgence in buyer confidence. Following a 7% drop from $4.038 to a low of $3.753, the token witnessed a strong rebound, currently trading around $3.97, reflecting a slight 1.3% decrease at the time of reporting.
According to technical analysis from CoinDesk Research, the drop was marked by a significant volume spike over 5.9 million which indicated selling pressure, followed by 1.7 million during the recovery. The price has formed an ascending channel post-correction, reinforcing the previous support level at $3.96.
Key resistance levels are noted between $3.98 and $4.00, while immediate support is observed at $3.95. A bullish pattern of higher lows has been established, bolstering the narrative of a potential upward movement in the market.
CoinDesk's research underscores the psychological importance of the $3.96 level, which has effectively been defended, suggesting that buyers are stepping in at this critical point. As always, market participants should exercise due diligence and consider their risk preferences when engaging in crypto trading.
According to technical analysis from CoinDesk Research, the drop was marked by a significant volume spike over 5.9 million which indicated selling pressure, followed by 1.7 million during the recovery. The price has formed an ascending channel post-correction, reinforcing the previous support level at $3.96.
Key resistance levels are noted between $3.98 and $4.00, while immediate support is observed at $3.95. A bullish pattern of higher lows has been established, bolstering the narrative of a potential upward movement in the market.
CoinDesk's research underscores the psychological importance of the $3.96 level, which has effectively been defended, suggesting that buyers are stepping in at this critical point. As always, market participants should exercise due diligence and consider their risk preferences when engaging in crypto trading.
