Polkadot (DOT) Rebounds 4% Amid Market Volatility and ETF Setback

Polkadot’s native token DOT staged a notable recovery after dropping nearly 7%, rebounding from $3.91 to $4.08 within 24 hours, according to CoinDesk Research’s technical analysis. The token traded in a volatile range between $3.91 and $4.20 from July 23 to July 24, settling at $4.08 by the session close.

The recovery coincided with broader market gains, as the CoinDesk 20 index climbed 1.4%. Despite the bounce, DOT remains 2% lower over the past day, currently hovering near $4.09.

Technical data highlights a critical support zone at $3.96, validated by trading volumes exceeding the 4.28 million average. Resistance is seen around $4.10, where rejection patterns suggest sellers are active. A sharp volume spike of 73,061 during the decline phase indicates possible institutional selling pressure. Should bullish momentum continue, DOT could target the next resistance near $4.13.

The rebound comes amid regulatory developments affecting the market. Earlier this week, the U.S. Securities and Exchange Commission (SEC) withdrew accelerated approval for a Bitwise crypto exchange-traded fund (ETF), which planned to include DOT among its top holdings. The decision adds uncertainty to DOT’s institutional investment prospects but may also present new opportunities if regulatory clarity improves.

Polkadot, known for its multi-chain interoperability and growing ecosystem, continues to attract attention from developers and investors seeking scalable blockchain solutions. As market volatility persists, key support and resistance levels will play a critical role in DOT’s short-term price trajectory.

This rebound positions Polkadot as a token to watch closely amid shifting sentiment in both retail and institutional crypto markets.