Here’s why Polkadot price rallied over 10% today
Polkadot price rebounded over 10% on Thursday as it recovered from a sharp drop earlier this week.
- Polkadot price rebounded over 10% after a sharp sell-off triggered by a bridge exploit that did not impact its core network security.
- The token found support near $1.15 as RSI signaled oversold conditions, prompting a relief bounce and improved market sentiment.
- A break above $1.31 resistance could open the door for further upside toward the $1.42 level in the short term.
According to data from crypto.news, Polkadot (DOT) price rose 10.4% to an intraday high of $1.29 on April 16, while bringing its market cap back above $2.16 billion. The bounce follows after the token fell nearly 13% this week.
Polkadot price bounced after rumors of a systemic network failure triggered a sell-off earlier this week. Notably, a security breach on the Hyperbridge gateway allowed an attacker to mint 1 billion bridged DOT tokens on the Ethereum network.
Despite an immediate knee-jerk reaction from the market, the panic-driven selloff subsided once investors realized the exploit did not compromise Polkadot’s native Relay Chain or its core security architecture. This clarity allowed the community to view the incident as an isolated bridge issue rather than a fundamental flaw in the Polkadot ecosystem.
Consequently, major exchanges like Upbit and Bithumb are moving back towards resuming normal services after a temporary suspension to protect users from potential volatility. This has significantly reduced the immediate liquidity bottleneck and restored a sense of normalcy to the trading environment.
Meanwhile, following the 27% drop over the past month, Polkadot price has reached a critical psychological bottom at $1.15 yesterday.
The Relative Strength Index, an indicator used to measure the speed and change of price movements, fell to 33.80, signaling that the token had entered a deeply oversold territory and was due for a relief bounce.
As of now, intraday price action has been strong, with DOT testing immediate resistance at $1.31. A successful close above this level could trigger bulls to target the $1.42 zone as the next logical destination for this recovery.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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