What to know:
- Polkadot confirms a trend reversal after bottoming near $0.95.
- Strong demand between $1.31 and $1.46 supports further upside.
- RSI and MACD indicate strengthening bullish momentum.
- SEC commodity classification improves investor confidence.
The Polkadot (DOT) chart is showing a completed corrective structure on the 4-hourly chart, as the asset is attempting to recover from the prolonged downtrend as of March 18, 2026.
The low was made around the $0.95 level, which is a clear Wave 5/C low, as explained by the crypto analyst More Crypto Online. The asset is now in a recovery phase, as indicated by the higher lows created, attempting to form a bullish base above the $1.30 support level.
The key retracement zone around $1.31 to $1.46 is seen as a significant demand area. The price is currently trading at $1.61, breaking through the 38.2% retracement level.
The price is holding up well above $1.46, which is seen as a continuation towards $1.97, followed by $2.76 as the next significant target on the upside.
This Elliott Wave pattern also suggests the start of a new impulsive wave, with the formation of the first wave and the second wave possibly complete. If this is the case, then the third wave could open aggressively towards the levels of $3.63 and $4.78.
However, if the price breaks down below the level of $1.30, then the price could test the level of $1.10 or lower support levels.
Also Read: Polkadot Sets 2.1 Billion DOT Cap in Economic Overhaul
Momentum Indicators Show Strengthening Bullish Bias
The momentum indicators are also supporting the bullish structure. In the case of the RSI (14), the value is at 59.10, and the moving average is at 51.19.
The indicator is rising from lower levels and is approaching the upper neutral zone. This is an indication that there is increased buying interest in the asset, as indicated in the chart on TradingView.
The MACD indicator displays a bullish formation, with the MACD line at 0.02349, the signal line at 0.01651, and the histogram at 0.00697.
The recent bullish crossover and rising green bars on the histogram suggest that the asset may continue to rise if the strength behind the rise continues.
Regulatory Clarity Adds to Bullish Sentiment
According to recent updates from the regulatory environment, the US SEC has listed Polkadot (DOT) as a digital commodity. This places it alongside other cryptocurrencies such as Bitcoin and Ethereum.
This could be an indication of the increased recognition of the decentralized structure of Polkadot. This framework also includes 14 other digital assets as commodities.
This gives more clarity between securities and commodities, which could boost the confidence of investors and institutions alike. This could result in more demand for the asset, which could cause the price of the DOT token to increase.
Why This Matters
The technical bounce of Polkadot’s price above $1.30 is an indication that there is a trend reversal, which is positive for the near-term bull run.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Polkadot (DOT) Hits $1.51 Amid ETF Debut, Bulls Eye $2.34 Rally
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