Polkadot Eyes Rebound Amid Double Bottom Pattern Signals
Polkadot’s DOT token ($3.3604) faced notable selling pressure recently, sliding as much as 5% before bouncing back. Technical indicators now suggest the potential for a recovery, with a possible double bottom pattern forming, according to analysis from CoinDesk Research.
Earlier this week, DOT attempted to establish an uptrend, climbing to $3.787. However, strong resistance at that level sparked a bearish reversal.
At the latest check, DOT was trading 2.6% lower over the past 24 hours around $3.63, having found support at $3.59. Meanwhile, the broader CoinDesk 20 index was down 0.5%.
CoinDesk’s technical model indicates that DOT is developing a double bottom pattern with improving momentum, which could support further gains if the token maintains support above $3.62.
Technical Highlights:
- DOT experienced a volatile session over 24 hours, trading in a range of $0.193 (about 5.1%). The token hit $3.787 before reversing lower.
- A bearish reversal formed when DOT failed to hold above the $3.75 level. Heavy selling occurred between 10:00 and 13:00, pushing volume to nearly 4 million tokens—well above the 24-hour average.
- Support emerged at $3.594, though DOT’s price action indicates lingering downside risk, as momentum remains mixed.
- In the final trading hour, DOT swung sharply from $3.643 to a low of $3.594 before attempting to rebound.
- That bounce lifted DOT by 1.3% to $3.642.
- The emerging double bottom pattern and improved momentum indicators suggest DOT may have room to move higher, provided it holds above $3.62.
Traders are keeping an eye on whether this potential reversal pattern can spark sustained upward momentum for Polkadot’s price.
