Polkadot (DOT) experienced a significant price drop of more than 6%, reflecting intensified market pressure amid a broader decline across digital assets. The token fell from $4.02 to $3.77 within a 24-hour period, driven by heightened selling momentum and weakening support levels.
DOT Price Breakdown: Key Support Now at $3.74
Support for DOT has deteriorated to $3.74, marking a crucial level to watch as bearish sentiment persists. This decline follows a rejection near $3.87, where resistance formed during heightened trading activity.
Substantial resistance continues to hold around $3.83–$3.87, capping recovery attempts and signaling ongoing bearish control.
Technical analysis suggests a clear downward price channel has developed, guiding DOT toward lower support zones unless momentum reverses.
Trading Volume Spikes Indicate Strong Distribution Phase
During the sharpest part of the decline, trading volumes exceeded the 24-hour average of 2.29 million, particularly between 09:00 and 11:00 UTC. The most notable surge occurred at 11:49–11:50 UTC, when volume spiked above 340,000, signaling possible capitulation.
These volume spikes align with major sell-side distribution, reinforcing the severity of the intraday decline.
Such aggressive sell-offs typically occur during exhaustion phases, where buyers step back, allowing sellers to control price action.
Market Context: Broader Crypto Index Also Drops
The decline in Polkadot is not occurring in isolation. The overall crypto market dropped by 2.5%, mirroring a synchronized risk-off move. This suggests that macro-level sentiment is influencing individual token behavior, not just token-specific news.
As market-wide losses continue, mid-cap altcoins like DOT are seeing sharper declines compared to Bitcoin or Ethereum.
Caution Ahead as Technical Indicators Turn Bearish
Polkadot’s current setup reflects a bearish outlook in the short term, with resistance clearly defined and support zones weakening. Until volume stabilizes and DOT reclaims levels above $3.83, continued downside risk remains in play.
Traders are advised to monitor volume levels and support confirmations closely, as the next sessions could define whether DOT enters consolidation or faces further decline.
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.