Polkadot’s native token, DOT, continues to face bearish pressure despite repeated attempts at short-term recovery. The asset has been caught in a tight trading range between $3.87 and $4.11, highlighting a market in search of direction amid broader crypto weakness.
DOT Trades in Narrow Range as Crypto Market Declines
Over the past 24 hours, DOT declined by approximately 1.9%, slipping to around $3.94 in line with a 3% drop in the broader crypto index.
This tight trading band — spanning just $0.24 — reflects a 6% range between intraday high and low, indicating low volatility but persistent selling pressure.
Despite short-lived rallies, sellers have consistently capped upside movement around the $4.11 resistance level, which has emerged as a critical ceiling in recent sessions.
Institutional Buying Observed at Support Zones
Interestingly, institutional-style volume surges were recorded during the early and mid-day trading sessions at 03:00 and 14:00 UTC, both coinciding with price tests of the $3.87 to $3.93 support range.
This zone has now become a key area of buyer interest, offering short-term support against further downside.
The increase in volume during these price levels suggests accumulation by larger players, potentially indicating value-based buying interest at these lower levels.
V-Shaped Recovery Attempts Show Signs of Momentum Shift
A V-shaped recovery took shape toward the end of the trading session, with DOT rebounding from $3.92 to above $3.94, pushing past an earlier resistance line.
This break above $3.94 hints at a short-term shift in sentiment, though it remains unconfirmed without follow-through volume and momentum.
For bulls, the $4.11 resistance remains the key upside barrier. A clear breakout above this level, supported by volume, would be required to confirm a trend reversal.
Polkadot’s short-term outlook remains range-bound, with clear support at $3.87-$3.93 and resistance at $4.11. While broader market sentiment remains weak, volume-driven support zones and recoveries off intraday lows suggest a possible shift in trader sentiment.
However, failure to hold support levels could invite further selling pressure. Traders should watch for sustained price action above $3.94 and volume confirmation to gauge momentum strength in the days ahead.
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.