Polkadot’s DOT token saw a sharp intraday pullback on Monday, dropping nearly 6% from its session high in what appears to be a bearish reversal after a short-lived rally. At the time of writing, DOT is trading near $3.88, holding just above a key support zone at $3.90.
Technical analysis shows that DOT recently tested a resistance level at $4.15, but failed to break through, triggering a wave of selling pressure. This reversal follows a multi-day uptrend from late July, during which DOT recovered from lows near $3.50 after breaking out of a prolonged descending channel pattern.
The $3.90 zone now acts as a crucial short-term support, with bulls hoping to maintain momentum above this level to prevent further downside. If support fails, the next potential demand area lies near $3.55–$3.60, which previously served as a consolidation zone in mid-July.
Conversely, a decisive break above $4.15 could open the door to a move toward the $4.40–$4.45 range, last tested in late July before sellers regained control.
Market strategist Daniel Kwan noted that “DOT’s price action reflects a common scenario in volatile altcoin markets — a relief rally meeting heavy resistance followed by a retracement toward established support.”
The pullback in DOT coincides with a mixed performance across the crypto market, with Bitcoin trading sideways near $60,000 and several altcoins facing profit-taking after recent gains.
With trading volumes remaining steady, all eyes are on whether buyers can defend the current support or if sellers will push DOT back toward July’s lows.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.