Polkadot Eyes Rebound as Technicals Hint at Double Bottom Formation

Polkadot’s native token, DOT ($3.3604), faced intense selling pressure, sliding as much as 5% before bouncing back and hinting at a potential double bottom formation—a classic reversal pattern signaling the chance for a broader recovery, according to CoinDesk Research’s technical analysis model.

Earlier this week, DOT attempted to establish an upward trend, rallying to a local peak of $3.787. However, stiff resistance at that level sparked a bearish reversal pattern, derailing the rally.

As of recent trading, DOT was down 2.6% over the past 24 hours, changing hands near $3.63 after finding a key support level around $3.59. Meanwhile, the broader CoinDesk 20 index was off by 0.5% at the time of writing.

CoinDesk’s technical model suggests that the price action may be carving out a double bottom pattern, which, coupled with signs of improving momentum, could open the door for further gains if DOT holds above the $3.62 mark.

Technical Highlights:

• DOT saw heightened volatility in the past 24 hours, swinging within a 5.1% range ($0.193). The token attempted a breakout to $3.787 but met firm resistance and reversed lower.
• A bearish reversal pattern formed as DOT struggled to maintain levels above $3.75, sparking significant selling during high-volume windows between 10:00 and 13:00, when volume surged close to 4 million tokens—well above the daily average.
• Support solidified at $3.594, although the price structure still hints at downside risks as DOT closed recent sessions near their lows, alongside weakening momentum indicators.
• Within the last hour of trading, DOT experienced sharp swings, plunging from $3.643 to a low of $3.594, before mounting a quick rebound.
• The token managed a V-shaped recovery, climbing 1.3% to $3.642 after touching support.
• Overall, the recent rebound is shaping into a potential double bottom pattern, which, paired with strengthening momentum, suggests a possible continuation higher—provided DOT stays above the crucial $3.62 support level.

Polkadot traders will likely watch upcoming sessions closely for confirmation that the double bottom is holding, as a sustained move above resistance levels could set the stage for a broader recovery.