Polkadot’s native token DOT has rebounded over 4% in the past 24 hours, reclaiming the $4.15–$4.20 zone after defending a critical consolidation range near $3.88–$3.92. The price action suggests renewed bullish momentum as buyers step back in following recent volatility.
After weeks of downward pressure that saw DOT fall from above $5 to sub-$3.90 levels, the token has staged a robust recovery. The $3.88–$3.92 range, previously a pivotal demand zone, has once again acted as a firm base for accumulation. A successful defense here has sparked renewed buying interest, pushing the price toward its immediate resistance band at $4.15–$4.20.
On the 4-hour chart, DOT broke free from a prolonged descending channel in late June, shifting market structure from a downtrend to a more sideways-to-bullish bias. This structural change has been reinforced by recent higher lows and volume spikes during upward moves.
Technical Outlook
Analysts note that the $4.20 level aligns with a Fibonacci extension target, making it a crucial short-term hurdle for bulls. “If DOT can close above $4.20 on strong volume, we could see a push toward the $4.40–$4.45 zone in the coming sessions,”According to BITX market strategist.
Conversely, failure to maintain momentum could lead to a retest of $3.85–$3.90, which remains the primary support area for the current bullish setup. A drop below this level could reintroduce bearish pressure, with potential downside toward $3.60.
Polkadot’s ability to hold $3.90 support and challenge $4.20 resistance will likely dictate its next major move. With momentum favoring buyers, traders are closely watching for a breakout that could open the door to higher targets before month-end.
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.