Rising volume failsto prevent DOT from reversing lower, erasing intraday gains
Polkadot’s token DOT moved sharply lower after failing to hold a key technical level, extending weakness seen across the broader altcoin market. The asset dropped nearly 5%, retreating from an intraday high near $2.09 to trade around $1.97 signaling renewed bearish pressure despite elevated trading activity.
The latest decline followed a clear break below short-term structural support, an area that had previously acted as a base for consolidation. Once that level gave way, selling accelerated, confirming a bearish continuation pattern on lower timeframes. Multiple failed attempts to reclaim resistance suggest that upside momentum remains limited.
Price action now reflects a series of lower highs and lower lows, reinforcing the prevailing downtrend. The inability to sustain gains above the $2.00 psychological level highlights persistent overhead supply, where sellers continue to dominate rallies.
Trading volume increased notably during the selloff, pointing to active participation rather than illiquid drift. This behavior often indicates distribution, where larger participants reduce exposure into short-lived price strength. While higher volume can sometimes precede a reversal, the lack of a strong bullish response weakens that case for now.
For Polkadot to stabilize, price must hold above the recent swing low and reclaim broken support as resistance-turned-support. Until that occurs, the structure favors further consolidation or downside continuation. A shift in broader market sentiment may be required before DOT can attempt a meaningful recovery.
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.