DOT Reclaims $3.96 After Brief Market Correction
Polkadot (DOT) has bounced back after a 7% correction, successfully defending the key psychological support at $3.96, which now signals a potential shift toward renewed bullish momentum.
DOT experienced a decline from $4.038 to $3.753 before rebounding to current levels near $3.97, regaining market structure within an ascending channel.
Higher Low Formation Confirms Buyer Strength
Technical analysis shows DOT forming a “higher low” pattern, which is a classic signal of growing buyer interest and possible trend reversal. Following the dip, the token reclaimed the $3.95–$3.96 zone, validating it as strong support.
The recent bounce has been supported by consistent accumulation, with volume exceeding 5.9 million during the correction phase.
Key Technical Highlights
- DOT corrected 7.06% from $4.038 to $3.753, establishing clear support.
- The rebound to $3.97 indicates a successful defense of the $3.96 psychological level.
- A higher low has formed, often seen as a bullish confirmation.
- Volume during recovery reached 1.7 million, reflecting sustained buyer interest.
- Resistance is now observed at $3.98–$4.00, while immediate support sits at $3.95.
- Price is now moving within an ascending channel, pointing to a continuation of the recovery trend.
Market Sentiment and Broader Context
The broader crypto market remains slightly down, with the CoinDesk 20 Index falling 0.8%, as investor sentiment was temporarily shaken by high-profile political headlines. However, DOT’s resilience and price recovery suggest relative strength compared to the wider market.
The ability of DOT to hold and bounce from the $3.95–$3.96 level highlights growing bullish sentiment and strategic accumulation by buyers.
Outlook for DOT
If Polkadot maintains its upward structure, the next key hurdle will be the $4.00 resistance zone. A breakout above this area could lead to a retest of previous highs, potentially extending to $4.10 and beyond in the short term.
The current recovery within a bullish pattern, backed by strong volume and a defended support level, suggests DOT may continue gaining strength if market conditions remain stable.