The Directional Movement Index (DMI) shows bullish and bearish forces converging, suggesting that selling pressure is easing. Meanwhile, Open Interest has remained relatively stable around 20 million, suggesting traders are maintaining positions rather than aggressively exiting the market. For now, DOT appears to be in the early stages of a recovery rather than a confirmed breakout.
A sustained move above $0.90 would strengthen the bullish case and increase the likelihood of a rally toward the upper boundary of the descending channel near $1.22. Until then, the broader downtrend remains intact despite the improving short-term outlook.
Can Cosmos and Polkadot Sustain Their Recovery?
The recent rebound in Cosmos price and Polkadot suggests that investor interest is gradually returning to legacy interoperability projects, but both tokens remain at crucial technical turning points. While the recovery has improved short-term sentiment, neither asset has confirmed a full trend reversal.
For Cosmos, reclaiming the $1.60 resistance is essential to invalidate the recent breakdown and signal a stronger recovery. Meanwhile, the Polkadot price appears to have the relatively stronger setup, with buyers defending the lower boundary of its descending channel. However, DOT must break above $0.90 and eventually clear the channel resistance near $1.22 to confirm a sustained bullish reversal.
Until these resistance levels are decisively breached, the current rallies should be viewed as early recovery attempts rather than confirmed trend reversals. A successful breakout by both assets could reinforce the narrative that legacy Layer-1 interoperability tokens are regaining momentum and attracting renewed market attention.
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