Polkadot (DOT) appears to be showing renewed bullish momentum after the course has climbed back above the psychological level of $3,96. According to CoinDesk Research’s technical analysis model, the coin found solid support after a 7% pullback that saw its price drop from $4,038 to a low of $3,753.
After this drop, DOT recovered strongly. Currently, the token is trading around $3,97, which is 1,3% lower than the day before.
The price formed an ascending channel after the correction and managed to recapture the important $3,95 level. This movement was accompanied by increasing buying pressure and a remarkably high trading volume. A peak volume of 5,9 million was reached during the correction, followed by 1,7 million during the recovery.
According to analysts, a clear pattern of higher lows is now visible — a classic bullish signal. Resistance currently lies between $3,98 and $4,00, while $3,95 acts as immediate support.
The broader crypto market is also recovering after a sharp decline, with the CoinDesk 20 index (CD20) down 0,8% at the time of publication. The recent swings have been attributed in part to public tensions between Donald Trump and Elon Musk, who temporarily caused uncertainty among investors.
Still, DOT appears resilient and technically well-positioned for potential further upside as long as the price remains above $3,95 and buying pressure persists.
Why is the $3,96 level important for DOT?
The $3,96 level is considered a psychological support zone. Successfully regaining it confirms the recovery and strengthens the bullish sentiment.
What indicates that DOT may rise further?
An ascending channel, higher lows, returning buying pressure and holding key support zones point to renewed upward momentum.
What is the next resistance for DOT?
The main resistance lies between $3,98 and $4,00. A break above this zone could confirm further upside.