Polkadot News Today: Polkadot Tests $3.44–$3.53 Support as Bullish Rebound Potential Looms

Polkadot (DOT) is currently testing its key support zone between $3.44 and $3.53, a level aligned with the 0.618–0.786 Fibonacci retracement levels on the daily chart. This area, previously a resistance level, is now showing signs of strength as the price hovers around $3.61, suggesting the potential for a bullish rebound toward $4.00 and $4.46 [1].

Market activity reveals a mix of bearish and bullish signals. In the past 24 hours, long liquidations totaled $370.86K, according to Coinglass data, while open interest in DOT derivatives increased by 2.76% to $426.11 million, reflecting sustained trader participation [1]. Derivatives volume declined by 41.22% to $352.54 million, and the long/short ratio remains below 1 at 0.9712, indicating cautious optimism among traders [1].

Despite the recent volatility, the overall market structure for DOT remains intact. Since early July, the asset has shown higher highs and higher lows, maintaining an upward trend. The current pullback from $4.46 has brought the price back into a key demand zone, with intraday data showing strong buyer and seller participation. The price opened near $3.53, dipped to $3.43, and has since shown a steady recovery, highlighting the resilience of market participants [1].

DOT’s market capitalization remains stable at $5.78 billion, with no signs of inflation risk due to a fixed supply of 1.6 billion tokens. This stability in supply, combined with the current price action, supports the potential for a sustained recovery if demand near the $3.44–$3.53 support zone continues to hold [1].

The retest of this key support zone is a critical event for DOT traders, as it aligns with previous reversal points and could signal the start of a new bullish trend. Analysts suggest that a successful hold above $3.44–$3.53 could lead to a move toward the $4.00 and $4.46 resistance levels, with open interest and market cap dynamics reinforcing this potential [1].

Polkadot’s price movement is also being influenced by derivatives activity, which reflects trader sentiment. Although long liquidations have occurred, the increase in open interest indicates that traders remain engaged and are positioning for potential price movement. The long/short ratio below 1 suggests a cautious stance, while the higher long bias on Binance points to selective bullish optimism among retail traders [1].

Traders monitoring the market should continue to watch price action and derivatives data closely. A strong rebound from the $3.44–$3.53 support could provide a solid foundation for DOT to reclaim key resistance levels, but any break below this zone could trigger further downside. As such, the coming days will be crucial for determining the direction of DOT’s next move.

Source: [1] Polkadot Retests Key Support Zone as Analysts Consider Potential Rebound Toward $4.46 (https://en.coinotag.com/polkadot-retests-key-support-zone-as-analysts-consider-potential-rebound-toward-4-46/)