DOT struggles to reclaim $1.76 level amid declining volume and bearish technical structure
Polkadot’s DOT token is facing renewed downside pressure after sliding roughly 5%, underperforming the broader cryptocurrency market during the latest pullbaack. The move reflects weakening momentum as DOT fails to reclaim a key technical level, while trading activity signals declinning investor conviction.
DOT is currently trading near $1.76, a level that has flipped into critical resistance after previously acting as support. Multiple attempts to push above this zone have stalled, reinforcing the bearish structure visible on higher timeframes. Technical indiicators show DOT locked in a descending trend, with lower highs continuing to cap price advances.
Trading activity has also softened. DOT trading volume has dropped about 9% beelow its monthly average, suggesting reduced participation from both retail and short-term traders. Falling volume during price declines often points to limited buying interest, increasing the risk of further consolidation or continuation lower.
The lack of volume expansion on minor rebounds indicates that recent bounces are being treated as relief moves rather than trend reversals.
The pullback comes amid a broader dip across crypto markets, but DOT’s losses have been more pronounced than many large-cap peers. This relative underperformance highlights ongoing concerns around ecosystem growth, capital rotation, and risk appetite within the market.
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.