DOT Falls Over 6% as Polkadot Weakness Deepens

DOT Slides Over 6% as Technical Breakdown Signals Continued Weakness

Polkadot’s DOT token fell sharply on Tuesday, dropping over 6% in 24 hours from $4.02 to $3.77 amid broad-based weakness across crypto markets. The CoinDesk 20 Index also declined 2.5%, underscoring wider market pressure.

The steepest losses occurred between 09:00 and 11:00 UTC, as trading volumes surged past the 24-hour average of 2.29 million, according to CoinDesk Research’s technical analysis model. During this window, DOT broke through multiple support levels, confirming a bearish shift in momentum.

Resistance has now firmed at $3.83, while support has weakened to around $3.74. At last check, DOT was trading near $3.775, down 6.2% on the day.

Technical Breakdown:

Volume Activity: 24-hour average volume stood at 2.29 million, with spikes during periods of heightened selling.
Resistance Zones: Immediate resistance is seen at $3.83, with a heavier barrier at $3.87 during peak liquidation.
Capitulation Signal: A volume spike exceeding 340,000 DOT between 11:49 and 11:50 UTC suggests panic-driven exits.
Trend Formation: A clear downward channel has taken shape, reflecting sustained lower highs and weaker support.
Support Shift: The lower bound dropped to $3.74 during the final hour of trading, marking a new technical floor.
Momentum: DOT’s failure to hold key levels points to accelerating downside momentum.

With selling volume continuing to outweigh bids and technical support zones deteriorating, DOT appears vulnerable to further downside unless market sentiment improves.