- Hyperbridge exploit triggered DOT drop, followed by strong 17% recovery after reassurance.
- Network activity and sentiment improved, but resistance near $1.35 limits upside momentum.
- Traders are watching $1.50 breakout or $1.20 support for the next major direction move.
Polkadot — DOT, recently faced sudden pressure after a major Hyperbridge exploit shook confidence in bridged assets. Panic hit the market fast, dragging the price lower within hours. However, sentiment shifted just as quickly after clarity from developers. The core network stayed secure, calming fears across the community. DOT then rebounded strongly, climbing back with a 17% recovery. Now traders question whether this move signals a real rally or just a temporary relief bounce.
Exploit Shock and Rapid Sentiment Reversal
The incident began when a hacker minted 1 billion DOT tokens on Ethereum. Lack of liquidity limited the exit, resulting in only $237K sold. Reports later confirmed total losses reaching around $2.5 million. The team responded quickly and emphasized recovery efforts across affected systems. Importantly, the main Polkadot chain remained untouched during the breach.
That clarification played a major role in stabilizing sentiment. Fear faded as users understood the exploit targeted bridged tokens only. Confidence returned across social platforms and trading communities. According to CoinMarketCap data, bullish sentiment climbed to 82% among 954.1K voters. Price responded immediately, jumping from $1.146 to $1.354 in a short span.
Network activity also improved after the announcement. Transaction counts rose from 10.5K to 11.9K within a single day. Daily active users expanded from 3,000 to 5,000. That increase showed users slowly returning after initial uncertainty. Total Value Locked also grew by 11.29%, signaling renewed engagement. Stablecoin market cap recovered to $77.83 million after earlier losses.
Resistance Pressure and Market Direction Uncertainty
Price action now sits near a key resistance zone around $1.35. Before the exploit, DOT already traded within a tight consolidation range. Prices moved between $1.20 and $1.35 since late March. The recovery pushed DOT back to the upper boundary of that range. However, strong rejection near resistance limited further upside. Buying momentum cooled quickly after the initial bounce. This pause raised concerns about the strength behind the recovery.
Cumulative Volume Delta dropped sharply from 1.60 million to just 60K DOT. That decline signals weakening buyer pressure during recent sessions. Correlation with Ethereum also changed dramatically after the incident. The coefficient fell from 0.86 to negative 0.55. That shift suggests reduced market alignment between both assets. Traders now view DOT movement as more independent and event driven.
If DOT breaks above $1.35 with strong volume, price could target $1.50. That move would confirm continuation of bullish momentum. However, rejection may push price back toward $1.20 support. A breakdown below that level would weaken the recovery structure. For now, DOT sits in a critical zone. Recovery looks strong, but confirmation remains missing.
