Polkadot’s native token, DOT, recorded a sharp 5% decline within the past 24 hours, sliding from a high of $3.76 to as low as $3.56. The selloff reflects growing market uncertainty and heightened bearish sentiment across the digital asset landscape.
Market Sentiment Turns Negative Amid Volume Surge
Despite initially pushing toward an intraday peak of $3.87 on July 31, DOT failed to hold gains as intense selling pressure emerged on August 1. Key volume spikes during selloffs—exceeding 200,000 units in short bursts—indicate that large sellers were active around critical breakdown points, causing a steep retreat.
DOT’s 5.3% 24-hour decline mirrors the broader downturn across major cryptocurrencies.
The broader crypto market index dropped by 3.7%, highlighting the synchronized pullback across altcoins. Uncertainty surrounding ETF developments and regulatory sentiment likely contributed to risk-off behavior among traders.
Key Support and Resistance Levels
Technical indicators have now identified a fresh support range between $3.55 and $3.58, where buyers have shown interest in slowing the decline. Conversely, resistance has been firmly established at $3.68, with a potential new barrier near $3.67 based on recent price rejection levels.
A breach below $3.60 marked a critical moment, triggering the final wave of selling and confirming the bearish shift.
Volume Trends Signal Exhaustion
Trading volume exceeded the daily average of 3 million during peak hours of the drop, particularly around 13:45 and 13:54 UTC. However, activity faded in the final minutes, suggesting that momentum may be weakening and a short-term consolidation could follow.
What This Means for Traders
Polkadot’s recent dip reflects wider macro challenges and declining investor risk appetite. While the asset remains structurally above multi-month lows, sustaining above the $3.55 support zone will be critical in the coming days.
Traders should monitor volume behavior, resistance levels near $3.68, and broader market cues before considering directional trades.
Polkadot must reclaim $3.68 to reverse short-term momentum and prevent deeper downside tests.
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.