The bullish momentum for Polkadot has returned.
Apparently, after the currency regained an important support level at $3.96, according to the technical analysis model.
DOT saw a correction of 7% from $4.038 to a low of $3.753 before establishing strong support and rebounding sharply, according to the model.
The currency is currently trading down 1.3%, around $3.97.
The broader market index, CoinDesk 20 CD20, decreased by 0.8% at the time of publication, also recovering from a sharp decline amid a struggle between President Donald Trump and Elon Musk.
Key points of technical analysis:
The pair witnessed a correction of 7.06% from $4.038 to a low of $3.753 before establishing strong support.
The price formed an upward channel after the correction, regaining the $3.95 level with increased buying pressure.
A significant increase in trading volume of over 5.9 million during the correction was followed by a volume of 1.7 million during the recovery period.
A major resistance was established in the range of $3.98-$4.00 with immediate support at $3.95.
A higher low pattern is forming after a short retracement, confirming the bullish momentum.
The psychological level of $3.96 has been successfully defended, reinforcing the recovery narrative.
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