DOT Declines Sharply, Losing Over 6% as Selling Pressure Mounts

DOT Falls Over 6% as Breakdown Accelerates, Support Levels Erode

Polkadot’s DOT token dropped more than 6% on Tuesday, retreating from $4.02 to $3.77 as part of a broader crypto market downturn. The CoinDesk 20 Index fell 2.5% during the same period, underscoring widespread risk-off sentiment.

The most significant pressure emerged between 09:00 and 11:00 UTC, where trading volumes surged above the 24-hour average of 2.29 million tokens, according to CoinDesk Research’s technical analysis. DOT breached multiple support levels during this window, solidifying its bearish trajectory.

As of latest trading, DOT was down 6.2% on the day, hovering around $3.775. Technical resistance has formed at $3.83, while support continues to weaken, now sitting near $3.74.

Key Technical Insights:

• Volume Spikes: Daily average stood at 2.29 million, with sharp increases during peak distribution.
• Resistance Zones: $3.83 acts as immediate resistance, with heavier supply pressure noted at $3.87.
• Capitulation Flash: Over 340,000 tokens traded within one minute at 11:49 UTC, signaling intense sell pressure.
• Trend Formation: A clear downward channel has taken shape, reflecting persistent lower highs and fading bids.
• Support Shift: The lower bound dropped to $3.74, indicating eroding buying interest.
• Market Structure: Inability to hold prior key levels confirms weakening momentum and downside bias.

With DOT firmly in a bearish channel and volume-driven selling dominating, the path of least resistance remains lower unless bulls regain control.