Polkadots DOT Drops Over 6% as Deterioration Accelerates

DOT fell more than 6% over 24 hours, retreating from $4.02 to $3.77 amid a wider sell-off in crypto markets that saw the broad market CoinDesk 20 index fall 2.5%.

The selling pressure in Polkadot intensified between 09:00 and 11:00 UTC when volumes topped the 24-hour average of 2.29 million, according to CoinDesk Research's technical analysis model.

This period witnessed elevated volatility as prices breached multiple technical support levels, establishing a downward trajectory with resistance at $3.83 and support deteriorating towards $3.74, according to the model.

In recent trading, DOT was 6.2% lower over 24 hours, trading around $3.775.

Technical Analysis:

• 24-hour trading volumes averaged 2.29 million with considerable spikes during distribution periods.
• Substantial resistance established at the $3.87 level during peak selling activity.
• Volumes exceeded 340,000 during the 11:49-11:50 timeframe indicating capitulation.
• Definitive downward channel formed with resistance capped at $3.83.
• Support levels deteriorated towards $3.74 during the final hour of trading.
• Valuations failed to sustain key technical levels amid heightened selling pressure.