Polkadot (DOT) shows signs of a trend reversal after bottoming near $0.95, with technical indicators pointing to strengthening bullish momentum. The recent classification of DOT as a digital commodity by the U.S. Securities and Exchange Commission has provided regulatory clarity, bolstering investor confidence alongside a key demand zone between $1.31 and $1.46.
Polkadot is attempting to recover from a prolonged downtrend after bottoming around $0.95, as analyzed by More Crypto Online. The asset is forming a bullish base above the $1.30 support level and has broken through a key retracement zone between $1.31 and $1.46. The price is currently trading at $1.61, with technical analysis suggesting potential upside targets at $1.97 and $2.76.
Momentum indicators are supporting this bullish structure, according to chart data. The RSI (14) is rising from lower levels to 59.10, indicating increased buying interest. The MACD indicator shows a bullish crossover, with the histogram displaying rising green bars.
Regulatory developments have added to the positive sentiment. The U.S. SEC has listed Polkadot as a digital commodity, placing it alongside cryptocurrencies like Bitcoin and Ethereum. This classification provides increased clarity between securities and commodities, which could boost investor and institutional confidence.
The technical bounce above $1.30 signals a potential trend reversal for Polkadot. However, analysts note that if the price breaks below $1.30, it could test support at $1.10 or lower. The formation of a new impulsive wave could theoretically open a move toward higher levels like $3.63 and $4.78.
