Polkadot saw a 4% increase to $2.21 in the past 24 hours.
This surge was triggered by a significant increase in trading volume, pushing DOT from $2.12 to a session high of $2.39, according to technical analysis performed by CoinDesk Research.
The analysis indicated that trading volumes spiked by 284% over the moving average during the breakout phase, before tapering off as prices returned to around $2.20.
The token exhibited notable institutional involvement rather than a frantic accumulation, as per the report.
Overall trading volumes for the 24-hour period were 31% lower than the weekly averages, despite the day’s volatility, suggesting a selective buying interest rather than a widespread sentiment throughout the session.
DOT’s performance aligned with general cryptocurrency market trends, reflecting minimal divergence from sector sentiment.
At the time of publication, the broader market indicator, the CoinDesk 20 index, reported a 2.4% increase.
Technical Analysis:
- Primary support confirmed at $2.19, with strong institutional buying during dips
- Resistance found at $2.39, near the session highs
- The current trading range of $0.20 signifies an 8.9% bandwidth, indicating heightened volatility
- Notable spike to 15.89 million tokens during the breakout versus an average of 2.81 million
- A V-shaped recovery pattern reflects buyer activity at support levels
- Range compression around $2.19-$2.20 suggests near-term consolidation
- The structure of higher lows indicates a positive technical outlook
- Downside risk appears limited near the $2.19 support level
- Upside targets are set at the $2.39 resistance, pending volume validation
Disclaimer: Portions of this article were drafted with the help of AI tools and were subsequently reviewed by our editorial team to ensure precision and compliance with our standards. For additional details, refer to CoinDesk’s complete AI Policy.
