Polkadot’s DOT Drops Over 6% as Technical Weakness Deepens
Polkadot’s DOT token declined over 6% on Tuesday, sliding from $4.02 to $3.77 amid a broader sell-off in crypto markets. The CoinDesk 20 Index also retreated 2.5%, highlighting widespread risk aversion across digital assets.
The sharpest decline came between 09:00 and 11:00 UTC, when DOT trading volumes surged past the 24-hour average of 2.29 million, according to CoinDesk Research’s technical model. This wave of selling pushed DOT through several key support levels, accelerating its downward trajectory.
At last check, DOT was down 6.2% on the day, trading near $3.775. Resistance has formed at $3.83, while support has weakened toward $3.74, suggesting limited near-term relief.
Technical Summary:
- Volume Activity: Daily average stood at 2.29 million, with significant spikes during the sell-off window.
- Resistance Zones: Immediate resistance is now seen at $3.83, with stronger overhead pressure around $3.87.
- Capitulation Signal: A sharp volume spike of over 340,000 tokens between 11:49 and 11:50 UTC indicates forced selling or panic exits.
- Trend Structure: DOT has entered a defined downtrend marked by lower highs and eroding support.
- Support Breakdown: Price action pushed support lower to $3.74 in late trading, confirming weakening market structure.
- Outlook: DOT’s inability to defend key technical levels points to sustained bearish momentum, barring a shift in broader sentiment.
With technical pressure building and volume-driven selling dominating recent sessions, DOT may remain under stress unless buyers step in at lower levels.
