Polkadot's DOT Bounces After 7% Decline

Polkadot's DOT staged a strong recovery after slumping as much as 7%, bouncing from $3.91 to $4.08 amid high trading volumes, according to CoinDesk Research's technical analysis model.

The model showed that DOT navigated substantial price swings during the 24-hour period from July 23 19:00 to July 24 18:00, oscillating between $3.91 and $4.20 before settling at $4.08.

Earlier this week, the Securities and Exchange Commission (SEC) withdrew its accelerated approval for a Bitwise crypto exchange-traded fund (ETF) that plans to include DOT among its top holdings by market cap.

The bounce in Polkadot came as the wider crypto market also rose, with the broader market gauge, the Coindesk 20, recently up 1.4%.

In recent trading, DOT was 2% lower over 24 hours, trading around $4.09.

Technical Analysis:

• Overall trading range of $0.28 representing 7% volatility between $4.20 maximum and $3.91 minimum.
• Critical support level established at $3.96 with high volume confirmation exceeding 4.28 million average.
• Resistance zone identified at $4.10 level showing price rejection patterns.
• Volume spike of 73,061 during decline phase indicating institutional selling pressure.
• Recovery pattern suggests potential continuation toward $4.13 target level.
• Net decline of 2% from opening despite strong bounce from overnight lows.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.