Polkadot’s DOT Drops Over 6% as Selling Pressure Breaks Key Support
Polkadot’s native token DOT slid more than 6% on Tuesday, falling from $4.02 to $3.77 amid broad-based selling in the crypto market. The CoinDesk 20 Index also declined 2.5%, reflecting a wider downturn across digital assets.
The heaviest pressure emerged between 09:00 and 11:00 UTC, when DOT’s trading volume surged past the 24-hour average of 2.29 million tokens, according to CoinDesk Research’s technical model. During this stretch, the price broke through multiple support zones, confirming a shift to a bearish trend.
As of the latest reading, DOT was down 6.2% on the day, trading near $3.775. Technical resistance has formed at $3.83, with weakening support now visible around $3.74.
Technical Overview:
- Volume Trends: Average daily volume stood at 2.29 million, with significant spikes during peak selling.
- Resistance Levels: Sellers capped gains at $3.83, with $3.87 acting as firm resistance during high-volume liquidation.
- Capitulation Signal: A sharp 340,000-token volume spike between 11:49 and 11:50 UTC signaled panic-driven exits.
- Trend Structure: A downward channel has taken shape, characterized by consistent lower highs and fading support.
- Support Breakdown: Price slipped to $3.74 late in the session, confirming the loss of key technical floors.
- Momentum Shift: Sustained failure to hold prior levels points to growing bearish momentum.
With DOT trapped in a declining structure and volume-driven selling dominating recent sessions, the token remains under pressure barring a shift in broader market sentiment.
