Polkadot’s native token, DOT, experienced a 3% decline in the past 24 hours, reflecting broader weakness across the crypto market. After multiple failed attempts to reclaim higher ground, DOT slipped from $4.09 to $3.96, signaling a potential short-term bearish phase.
DOT Support Levels Hold Firm at $3.91–$3.93
Despite the downward pressure, a support base has been identified around the $3.91 to $3.93 range. This zone has shown resilience over recent sessions, preventing deeper losses during moments of heightened selling.
Support remains critical at the $3.91-$3.93 zone, cushioning price during volatile dips.
However, a key breakdown occurred at the $4.02 level, a previous support-turned-resistance, which now acts as a ceiling for any attempted recoveries.
Resistance Emerges Between $4.03 and $4.07
Current resistance is forming around $4.03 to $4.07, a range that has proven difficult for bulls to breach. Until DOT can reclaim and hold above $4.07, upside potential remains limited. The zone coincides with previous rejection points, increasing its technical significance.
Multiple rejections near $4.07 reinforce short-term bearish sentiment.
Volume Patterns Indicate Temporary Exhaustion
During the last 24 hours, trading volume peaked at 3.97 million around 00:00 UTC, well above the average volume of 2.26 million. This spike signaled intensified sell pressure, contributing to the price decline. However, volume tapered off in the final minutes, suggesting possible exhaustion among sellers.
Market Sentiment Aligns With Broader Trends
The drop in DOT mirrors a broader crypto market pullback. As of Tuesday, the overall market gauge was down 1.2%, placing downward pressure across altcoins.
DOT’s decline aligns with weakening sentiment across the digital asset market.
Outlook for Polkadot
For any bullish reversal to materialize, DOT must reclaim $4.03 and sustain volume above average levels. A failure to do so may invite further consolidation or a retest of the $3.91 support.
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.