Polkadot (DOT) Shows Modest Gains Amid Broader Crypto Rally
Polkadot (DOT) rose 0.8% over the past 24 hours to $2.12, lagging the wider cryptocurrency market, with the CoinDesk 20 (CD20) index up 2.8% at the same time. CoinDesk Research’s technical analysis suggests this underperformance reflects cautious sentiment toward the Polkadot ecosystem.
The advance occurred on elevated trading activity, with 24-hour volume 26% above the seven-day average. This points to intentional market positioning rather than low-conviction drift, though relative underperformance indicates profit-taking may be outweighing new accumulation.
During the session, DOT moved from $2.09 to $2.14, forming an ascending trend with higher lows at $2.05 and $2.09. The total trading range of $0.13 represents 6.1% volatility. A key volume spike saw 5.75 million tokens traded—134% above the 24-hour average—pushing the price past $2.12 resistance to session highs near $2.16.
Technical Overview:
- Support levels: $2.05 (strong), $2.14 (immediate). Resistance at $2.16.
- Exceptional volume surge during the resistance test, with a 60-minute spike of 145,000 tokens linked to distribution activity.
- Ascending trend with higher lows contrasts with a descending channel visible in shorter time frames.
- Upside target remains $2.16, with potential extension if volume confirms; downside risk toward $2.05 represents 6.1% range vulnerability.
In summary, DOT exhibits short-term bullish momentum, but underperformance relative to the broader market and ongoing profit-taking suggest investors remain cautious
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