Polkadot’s native token, DOT, demonstrated resilience on July 24, rebounding sharply after a 7% intraday plunge, which was met by heavy institutional buying interest. The recovery signals potential bullish momentum amid broader market volatility.
DOT Price Recovery Signals Buyer Confidence
After falling from $4.18 to a low of $3.91, DOT bounced back to close at $4.08, according to technical data. This recovery was confirmed by high trading volume, suggesting that sell pressure was largely absorbed by buyers.
The 24-hour trading window showed significant volatility, with DOT oscillating between $3.91 and $4.20, a range of 7%. The strong close near the high end of the range points to renewed buyer confidence.
Volume Data Confirms Institutional Activity
A notable volume spike of 73,061 was recorded during the decline phase, pointing to institutional selling pressure. However, the rebound phase saw volume levels above the 4.28 million daily average, indicating that large-scale buyers stepped in to support the price.
This type of volume confirmation often signals a potential trend reversal or at least short-term price stability.
Key Technical Levels to Watch
- Support Level: $3.96 has emerged as a crucial support level, where buy orders have consistently absorbed selling attempts.
- Resistance Level: The $4.10 mark now acts as overhead resistance, where DOT has faced price rejection.
- Volatility Range: A $0.28 trading band between $3.91 and $4.20 continues to define short-term price action.
Traders are closely monitoring whether DOT can break above the $4.10 resistance, which could pave the way for a retest of previous highs.
Wider Market Sentiment and ETF Impact
The broader crypto market also saw a modest 1.4% gain, as reflected by the market-wide benchmark. Notably, regulatory uncertainty briefly pressured DOT, following news that the SEC withdrew its accelerated approval for a Bitwise ETF, which included DOT among its top holdings.
Still, DOT’s rebound indicates underlying strength and investor interest despite temporary market headwinds.
Outlook: Can Polkadot Sustain the Momentum?
As of recent trading, DOT was down 2% over 24 hours, trading near $4.09. However, high volume support and clear resistance tests offer a positive technical setup.
If DOT can hold above $4.00 and break $4.10 convincingly, bullish continuation remains in play.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.