Polkadot (DOT) Drops After Support Break; Heavy Volume Signals Bearish Momentum
Polkadot’s native token DOT fell sharply after key support levels broke, first slipping below an ascending trendline near $2.05 and then collapsing through the $1.90 psychological level to around $1.82. The move unfolded despite Coinbase announcing direct Polkadot network support. CoinDesk Research’s technical models flagged decisive violations and heavy selling in the final trading hours, with volume spiking to roughly 284%–340% above the 24‑hour average (peak hourly flows ~400% above baseline), suggesting institutional distribution around the $1.90–$1.95 zone. Technical structure shifted from neutral/bullish tests to clear bearish momentum: lower highs, a descending channel from the $1.92 high, and a potential double‑top after failed breakouts near $1.95–$2.00. Immediate support sits near $1.82–$1.95 (psychological $1.95 and $1.90 levels noted); failure of $1.82 risks extension toward $1.75–$1.80. Immediate resistance is the broken $1.90–$2.00 range, and a sustained recovery requires reclaiming $2.00 with convincing volume. Broader markets were weaker during both reports (CoinDesk 20 index down ~0.6% to ~2%). Traders should watch price action around $1.82, $1.90–$1.95, volume trends, and whether DOT can retake $2.00 to reassess short‑term bias.
Bearish
Both updates point to a confirmed technical breakdown in DOT driven by high-volume selling. Volume spikes far above the 24‑hour average during the declines indicate distribution rather than a low-conviction sell‑off, increasing the likelihood of continued downward pressure in the short term. Key technical signals include lower highs, a descending channel from the $1.92 high, and failed breakouts near $1.95–$2.00, which together create a bearish structure. Immediate risk is concentrated at $1.82 — loss of that level opens the $1.75–$1.80 range. While Coinbase’s network support is a positive fundamental development, it has not prevented technical weakness; only a decisive reclaiming of $2.00 with sustained volume would negate the bearish outlook. For traders, this implies higher probability of short opportunities or caution on longs until clear volume-backed recovery is seen. Longer-term impact depends on whether on‑chain usage and integrations translate into sustained demand; absent that, the technical bias could persist.