DOT Tumbles Nearly 5% Following Polkadot’s Unsuccessful Breakout and Fresh Selling Pressure

Polkadot Attempts Recovery as Double Bottom Pattern Emerges

Polkadot’s DOT token ($3.3604) faced significant selling pressure recently, tumbling by as much as 5% before staging a partial rebound. Technical signals suggest the possibility of a double bottom formation—a pattern that could indicate a broader price recovery, according to analysis from CoinDesk Research.

DOT tried to build upward momentum earlier in the week, briefly pushing to a high of $3.787. However, it encountered stiff resistance at that level, leading to a bearish reversal.

At last check, DOT was trading down 2.6% over the past 24 hours, hovering near $3.63 after finding support at $3.59. In comparison, the broader CoinDesk 20 index was down 0.5%.

CoinDesk’s technical analysis model highlights that DOT may be shaping a double bottom pattern, with momentum indicators showing signs of improvement. Sustaining support above $3.62 could pave the way for additional gains.

Technical Snapshot:

• DOT traded in a volatile 24-hour window, swinging within a range of 5.1% (about $0.193). It reached $3.787 before encountering resistance and reversing course.
• A bearish reversal pattern formed after DOT failed to hold above the $3.75 level. Selling intensified during peak trading hours between 10:00 and 13:00, when volume surged to nearly 4 million tokens, exceeding the daily average.
• Key support emerged at $3.594, though DOT’s recent price action suggests lingering downside risks, as momentum indicators remain mixed.
• In the last hour of trading, DOT saw rapid fluctuations, dropping from $3.643 to a low of $3.594 before rebounding.
• This quick rebound led to a 1.3% gain, lifting DOT back to $3.642.
• The formation of a potential double bottom, alongside recovering momentum, suggests that DOT may be positioned for further upward movement—so long as the price stays above the $3.62 threshold.

Traders will be watching closely for confirmation of this pattern, as a sustained break above resistance levels could trigger renewed bullish momentum in DOT’s price action.

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