Polkadot’s DOT slipped about 4% over the past 24 hours, falling to roughly $3.75 after the token broke a key short-term support level. Traders saw a spike in volatility and volume as multiple recovery attempts failed, leaving the technical outlook bearish in the near term.
According to CoinDesk Research’s technical model, DOT traded within a tight $0.15 range during the sell-off — a 4% intraday volatility move — with resistance holding at $3.90 and the critical support at $3.80 giving way. The support breakdown coincided with a larger volume pulse of about 2.21 million units, while a concentrated surge at 14:06 UTC recorded 380,614 units during the most aggressive leg down, underscoring heavy selling interest.
The weakness wasn’t isolated to DOT. The broader market gauge, the CoinDesk 20, fell about 2.7% during the same session, signaling market-wide pressure that likely amplified the drop. Multiple attempts to reclaim levels above $3.75 were rejected, suggesting sellers were dominant across short and medium timeframes rather than isolated, one-off trades.
The research model notes that technical structure deteriorated rapidly as a number of recovery attempts failed. Bounce failures above the $3.75 threshold and repeated rejections at resistance confirm sustained selling across multiple timeframes, increasing the likelihood of continued downside pressure until a clear reversal signal appears.
What traders should watch next: if selling persists, lower short-term supports could be tested; conversely, a reclaim of $3.90 with sustained volume would be needed to restore a more constructive technical profile. Because intraday ranges are tight, small shifts in buying or selling can produce outsized percentage moves, so position sizing and stop management remain important. Traders and investors should also watch volume confirmation — a rebound without supporting volume is less likely to hold.
Risk note: this piece is market analysis, not investment advice. Cryptocurrency prices are volatile and can move quickly. Always conduct your own research and consider your risk tolerance before trading.
Source: CoinDesk. Read the original coverage for full details.
