Polkadot Activity Drops as DOT Trades Near Critical Support Level
Polkadot’s ecosystem has seen a notable slowdown so far in 2025, with both transaction volumes and price action reflecting caution among market participants.
Data from CoinDesk Research shows that DOT, Polkadot’s native token, has been moving within a narrow 4.4% price band, recently peaking at $3.46 before experiencing a pullback. Currently, DOT is testing a vital support level around $3.32, which has emerged as an important floor in recent sessions.
The network’s transaction activity also weakened, with total transactions in Q1 falling 36.9% from the previous quarter to 137.1 million, signaling reduced engagement on the blockchain.
As of the latest data, DOT has dropped 2.4% over the past day, trading near $3.31. The broader crypto market, measured by the CoinDesk 20 Index, mirrored this decline with a similar 2.4% decrease.
Technical Insights:
- DOT saw its strongest upward momentum between 19:00 and 20:00 UTC on June 30, surging to $3.46 on elevated trading volume of 1.81 million.
- Firm support emerged near $3.32 around 07:00 UTC on July 1, with significant volume of 1.34 million DOT signaling active buying.
- Toward the end of the session, selling pressure resurfaced, pushing DOT to close near the lower end of its range at $3.33.
- A brief rally lifted DOT to $3.36 at 15:06 UTC, but the gains were quickly erased as selling intensified around 15:36 UTC.
- A sharp increase in trading volume—totaling 267,000 DOT between 15:31 and 15:32 UTC—suggests potential institutional selling activity.
