Polkadot’s native token DOT experienced a notable decline over the past day, falling from $4.09 to $3.96, which represents a decrease of more than 3%. This downturn occurred alongside broader cryptocurrency market weakness, with major indices also posting losses during the same period.
Trading data reveals that support levels have emerged in the $3.91 to $3.93 range, where buying interest has shown up during overnight sessions. The price action suggests that sellers may be losing momentum at these levels, with volume patterns indicating potential exhaustion of the downward pressure.
Technical Breakdown Points to Key Levels
The technical picture for DOT shows several important price points that traders are watching closely. After breaking through the critical $4.02 support level in recent hours, the token has struggled to regain its footing above the $4 mark. Resistance now sits between $4.03 and $4.07, creating a clear range for any potential recovery attempts.
Trading volume patterns have been particularly telling, with a significant spike to 3.97 million tokens changing hands at midnight UTC, well above the typical average of 2.26 million. However, as the selling continued, volume began to taper off in the final minutes of trading, suggesting that the immediate selling pressure might be waning.
Polkadot Looks Ready to Explode — $3 Might Be the Bottom, and $30+ Could Be Next$DOT is consolidating in the $4–$3 Accumulation Zone, right at the retest of a multi-year trendline breakout.
🔹 IMO: Best accumulation range = $4.00–$3.00
🔹 Holding this zone could trigger a… pic.twitter.com/ddTlB2TGov— Crypto Patel (@CryptoPatel) July 29, 2025
Broader Market Context
The weakness in DOT mirrors the broader cryptocurrency market’s performance, with the CoinDesk 20 index declining by 1.2% during the same timeframe. This correlation suggests that DOT’s price movement is partly driven by general market sentiment rather than project-specific concerns.
Despite the price challenges, the Polkadot ecosystem continues to see development activity. The Tie recently hosted a webinar focusing on real-world applications for the Polkadot blockchain, highlighting ongoing efforts to expand the network’s utility and adoption.
Near-Term Market Outlook
The combination of DOT’s 3% decline and its failure to hold above key support levels suggests continued bearish pressure in the immediate term. With selling exhaustion potentially setting in near current support zones, traders will likely watch for either a breakdown below $3.91 or a recovery attempt toward the $4.03-$4.07 resistance area.
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