Polkadot’s native token, DOT, staged a strong comeback on Thursday, climbing more than 10% after a sharp drop earlier this week shook market confidence. The rebound comes as fears around a recent security incident began to fade, helping restore sentiment among traders.
According to data from crypto.news, Polkadot (DOT) surged 10.4% to hit an intraday high of $1.29 on April 16. The move also pushed its market capitalization back above $2.16 billion. This recovery follows a rough few days, during which the token had fallen nearly 13%.
The earlier sell-off was triggered by concerns over a potential network issue. Reports revealed that a security breach on the Hyperbridge gateway allowed an attacker to mint around 1 billion bridged DOT tokens on the Ethereum network. The news sparked immediate panic, with many investors rushing to exit their positions.
However, the situation quickly became clearer. Developers and analysts confirmed that the exploit did not affect Polkadot’s core infrastructure. Its Relay Chain—the backbone of the network—remained secure, and the incident was isolated to the bridge mechanism rather than the protocol itself.
This distinction played a key role in calming the market. Once investors understood that Polkadot’s underlying security was intact, selling pressure began to ease, paving the way for a recovery. The event is now largely being viewed as a contained issue rather than a systemic failure.
Crypto exchanges also took precautionary steps during the turmoil. Major platforms like Upbit and Bithumb temporarily suspended certain services to limit user exposure to volatility. With the situation stabilizing, these exchanges are now moving toward resuming normal operations, helping improve liquidity and rebuild trading confidence.
From a technical perspective, DOT’s recent bounce also aligns with oversold conditions. After dropping about 27% over the past month, the token found support near the $1.15 level—a key psychological zone for traders.
At the same time, the Relative Strength Index (RSI), a widely used momentum indicator, dipped to 33.80. This signaled that the asset had entered oversold territory, often a precursor to a short-term rebound.
In today’s session, DOT showed strong momentum and is now testing immediate resistance around $1.31. If buyers manage to push the price above this level and sustain it, the next upside target could be around $1.42 in the near term.
For now, Polkadot’s recovery highlights how quickly sentiment can shift in the crypto market—especially when initial fears turn out to be less severe than expected.
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