Polkadot’s DOT Recovers Strongly After 7% Drop Amid High Volume

Polkadot’s DOT token rebounded sharply from overnight lows, with strong volume signaling buyers absorbing institutional selling pressure.

After dipping as much as 7%, DOT bounced from a low of $3.91 to $4.08 during the 24-hour period ending July 24 at 18:00 UTC, according to CoinDesk Research’s technical analysis. The token’s price fluctuated between $3.91 and $4.20 before settling near $4.08.

Earlier this week, the U.S. Securities and Exchange Commission (SEC) withdrew its accelerated approval for a Bitwise crypto exchange-traded fund (ETF) that would have included DOT among its top holdings by market capitalization.

The recovery in DOT coincided with gains across the broader crypto market, with the CoinDesk 20 index rising 1.4% recently.

Despite the rebound, DOT was still down roughly 2% over the last 24 hours, trading near $4.09 at the time of reporting.

Technical Highlights

• Intraday trading range of $0.28, reflecting 7% volatility between $4.20 high and $3.91 low
• Strong support confirmed near $3.96 with volume surpassing 4.28 million tokens
• Resistance zone identified around $4.10, showing price rejection patterns
• Volume spike of 73,061 tokens during the sell-off indicates institutional selling
• Recovery suggests potential move toward a $4.13 target
• Net 2% decline on the day despite strong bounce from overnight lows