Polkadot’s DOT Falls as Much as 5%, Triggered by Reversal After Breakout Failure

Polkadot Shows Signs of Recovery After Sharp Drop

Polkadot’s DOT token ($3.3604) suffered a sharp decline of up to 5% but has bounced back, hinting at a potential turnaround. Technical signals from CoinDesk Research point to a double bottom pattern forming, suggesting room for a recovery.

Earlier, DOT tried to rally, reaching $3.787 before hitting stiff resistance and reversing lower.

As of the latest data, DOT was down 2.6% over 24 hours, trading near $3.63 after finding support at $3.59. Meanwhile, the CoinDesk 20 index slipped 0.5%.

CoinDesk’s technical model suggests that if DOT holds above $3.62, the emerging double bottom pattern could fuel further gains.

Key Technical Insights:

• DOT traded in a volatile range of $0.193 (about 5.1%) over 24 hours, peaking at $3.787 before selling pressure set in.
• A reversal took shape after DOT failed to sustain levels above $3.75, triggering heavy selling during the late morning hours when volume spiked to nearly 4 million tokens.
• Strong support was found at $3.594, though lingering downside risks remain as momentum indicators weaken.
• In the final hour of trading, DOT dropped from $3.643 to $3.594 but quickly rebounded, climbing 1.3% back to $3.642.
• The current chart pattern signals a possible double bottom with improving momentum, pointing to potential gains if DOT stays above $3.62.

Market watchers are closely monitoring whether this pattern can help DOT recover further after its recent volatility.