Polkadot Signals Possible End to Correction After Bounce From Key Zone

Polkadot (DOT) is showing signs of recovery after rebounding from a key technical support zone, sparking discussions around a possible end to its recent correction. While short-term price action hints at renewed strength, technical analysts remain focused on confirming a true trend reversal through key chart patterns and resistance levels.

The price of Polkadot (DOT) has remained steady at a popular support area called the blue target zone by many analysts. It could show that the correction has ended. The initial rise has come in three mostly sideways waves, which are normally seen in corrective sideways movements rather than the start of a prolonged bullish pattern. Therefore, traders in the market hold back from big actions until a clear change takes place.

The creation of a micro five-wave impulse could tell us if the trend is confirmed. Analysts are observing this development closely. If this takes place, it could begin a new rise in prices and show the recent low as a significant low. Such a shift could bring in experts who rely on rules created by Elliott Wave.

Price Movement and Market Indicators Show Mixed Signals

In the last 24 hours, DOT went up by 4.83%, bringing its price from around $3.97 to above $4.22. After this advance, there was a slight pullback and the asset is currently worth $4.16. An uptick in shares is followed by a 6.47% rise in daily trading volume and a 4.85% growth in market capitalization, implying market players are getting more engaged.

                                    Source:Tradingview

But the technical indicators are still conflicting. The Relative Strength Index (RSI) for DOT is 42.40 which implies that the market is neutral to bearish and that momentum is not prominent. For the moment, MACD is still below zero, but the gap between the two MACD lines is shrinking which could signal a moving average bullish crossover. Should volume increase and RSI keep rising, this signal may signal the beginning of a larger trend.

Key resistance levels are still very important.

Even though prices have gone up briefly, the whole structure is still resisting any major moves. Soon after the failure of the $5.00 level, it has typically stopped cryptocurrencies and this area must be surpassed for a correction to become a general uptrend. Until this confirmation comes, the current move is judged as a rebound taking place under a greater corrective process. Industry experts will observe the next trading sessions to make sure the trend continues.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their research before making financial decisions.