Polkadot's native token, DOT, experienced a notable rebound after forming a triple bottom support level at around $3.47. Following a 3.67% correction to $3.464, the token found significant buying interest with volume exceeding 2.5 million units, well above the 24-hour average. This price action formed a bullish reversal pattern characterized by consecutive higher lows, suggesting potential upside momentum if the token can break the $3.57 resistance level.
Earlier in the month, DOT fell over 32%, hovering near a critical $3.50 support zone that historically triggered bullish reversals. Despite the sharp decline, trading volumes surged 50%, indicating strong investor activity. Analysts and market experts have cited this support level as a potential turning point, with predictions of a significant rally once DOT moves above $5.20. Notably, on-chain data revealed a $1.6 million net outflow of DOT from exchanges, signaling accumulation by long-term holders that might alleviate selling pressure.
While the broader market showed mild optimism, geopolitical tensions in the Middle East introduce uncertainty that could impact market sentiment. Should DOT hold above $3.50, it may replicate previous rallies back to the $5.00–$6.00 range. Conversely, failure to maintain this support could lead to a sharper decline due to lack of nearby support levels.