Polkadot (DOT) price has begun its recovery journey, bouncing off the crucial $6.2 support level after a period of intense selling pressure. This key price floor has proven its strength, giving bulls the confidence to reenter the market. Oversold conditions signal a potential reversal, and DOT is now gradually climbing, sparking renewed optimism among traders who hope for stronger bullish momentum in the days ahead.
With technical indicators aligning to support a recovery narrative, DOT’s ability to hold and build on the current bounce will be crucial in determining its next price phase. Will this gradual comeback pave the way for Polkadot to break free from its recent slump, or will bearish pressure reassert itself?
Polkadot Recovery In Focus: Can Bulls Sustain Momentum?
Following the rebound at the $6.2 support level, DOT’s price is now exhibiting early signs of recovery. DOT is slowly but steadily attempting to push higher, with its sights set on reaching the 4-hour Simple Moving Average (SMA). This moving average acts as a key technical indicator for short-term trends, and a move toward it suggests that Polkadot is gaining strength in its recovery effort.
Furthermore, DOT’s gradual price increase reflects a shift in market sentiment, moving from bearish to more neutral as buyers cautiously re-enter the market. The $6.2 support level has provided a solid foundation, which allows the price to stabilize and begin its ascent.
As the token approaches the 4-hour SMA, it will encounter a critical point where the bulls must demonstrate their strength by surpassing this level. Successfully breaking above the SMA could catalyze more gains, confirming that the bullish momentum is taking hold.
Technical indicators are starting to reveal early positive signs for Polkadot, with the Composite Trend Oscillator showing promising movement. Currently, the indicator, which synthesizes multiple technical indicators, indicates that DOT is in oversold territory, suggesting the cryptocurrency could be poised for a reversal as buying interest begins to emerge.
However, the journey to the SMA is still in its early stages, and the recovery remains fragile. Any failure to hold above the $6.2 support or to break through the SMA may result in a setback for Polkadot, potentially allowing bearish pressure to resume.
Key Resistance Levels To Watch For Ahead
As Polkadot attempts to sustain its momentum, key resistance levels will play a critical role in determining whether the recovery can continue. The first major resistance to watch is around the $7.7 mark, which might act as a barrier to further upward movement. A break above this level would indicate increasing bullish strength, paving the way for a move toward higher price targets.
Additionally, the $9.8 range may present challenges as DOT works to establish a more solid uptrend. Monitoring these resistance levels will be essential in assessing whether Polkadot can maintain its upward trajectory or if bearish forces will regain control.
Source: NewsBTC