Recent Technical Analysis
Polkadot found important support between $3.84–$3.92, which allowed for a recovery of more than 4% to near $4.12, driven by high volume (over 7 million) and institutional purchases.
In shorter time frames (1h, 24h), the simple and exponential moving averages are showing ongoing bearish pressure.
In the most recent range, support is estimated between $3.55–$3.58 and resistance around $3.68, although the price is already trading above this last area.
Functionality and Fundamentals
Polkadot enables interoperability between blockchains through parachains, with shared security and governance via the DOT token.
It is a robust platform in active development, backed by the Web3 Foundation and Parity, and has a very active technological ecosystem.
What does all this mean?
The defense of the $3.84–$3.92 level and the rebound with volume indicate that there is significant buying interest, a positive sign.
For the price to resume a clearer upward trend, it will need to consolidate above $4 with persistent volume.
If it loses key supports (especially $3.84), it could correct towards $3.60–$3.50 before seeking a reversal.
DOT is showing signs of resilience within a volatile market. There are technical and adoption fundamentals that support its short-term recovery potential, but the overall environment remains uncertain. Keeping an eye on the support at $3.84–$3.92 will be crucial, as well as watching for any additional volume and institutional news that could drive the price.