Polkadot (DOT) Recovers Key $3.96 Support After Bearish Setup, Showing Renewed Bullish Momentum and Short-Term Trading Opportunity

Published: 2025-06-06 17:29:13 |

Polkadot (DOT) displayed a shift in market sentiment over two key reporting periods. Initially, technical analysis pointed to the risk of a bearish breakdown following an ascending triangle pattern and declining volumes, with the potential for a 15% drop if $4.642 support failed. The Relative Strength Index (RSI) indicated growing but cautious momentum. Meanwhile, the emergence of Lightchain AI in the decentralized AI sector drew significant presale interest, offering a contrasting investment narrative to DOT’s short-term risk. More recent updates highlight Polkadot’s resilience, as DOT rebounded from a 7% correction (from $4.038 down to $3.753) by forming a higher low and reclaiming the critical $3.96 psychological support. This recovery was bolstered by strong buying activity, increased trading volume (spiking over 5.9 million during the pullback), and the establishment of an ascending channel. Resistance lies at $3.98–$4.00, while $3.95 serves as immediate support. The overall crypto market also showed stabilization after recent volatility, influenced by external factors. For crypto traders, Polkadot’s defense of the $3.96 level and formation of a higher low indicate a potential shift from bearish to bullish short-term momentum. The evolving technical setup and market response highlight emerging opportunities, especially if DOT’s recovery persists. However, caution remains warranted following recent volatility.

Bullish

Initially, Polkadot (DOT) was at risk of a technical breakdown, with indicators pointing to further downside. However, the latest analysis shows a higher low formation, reclamation of the key $3.96 support, and increased buying volume, all of which suggest a shift in sentiment and renewed short-term bullish momentum. The strong defense of support and volume spike are classic indicators of potential price recovery, presenting attractive opportunities for traders as long as buying interest persists. The stabilization of the broader crypto market adds further support to this outlook, although recent volatility warrants vigilance. Overall, market signals have transitioned from bearish risk to short-term bullish opportunity.