In the past day, Polkadot’s digital currency, DOT, has experienced a notable decline. The token‘s value decreased from $3.76 to $3.56, marking a loss exceeding 5%, according to a technical analysis by CoinDesk Research. On July 31, DOT achieved an intraday peak of $3.87, but rapidly encountered heavy selling pressure.
What Drives the Current Selling Pressure?
The market initially showed signs of resistance, but a surge of selling on August 1 caused a significant decrease in DOT’s value. This selling wave also led to a remarkable increase in trading volume, with activity notably surpassing the 24-hour average at crucial points. The CoinDesk 20 index also reflected a 3.7% dip, suggesting a broader decline across the cryptocurrency sphere.
Where Does DOT Stand Technically?
Technical assessments reveal that DOT initially reached a peak at $3.87, yet subsequent selling pressure drove up trading volumes during price drops. Transactions often exceeded 200,000 units, with the primary support zone identified between $3.55 and $3.58. The market is closely watching to see if this support band holds.
A critical resistance point is located at $3.68. When the $3.60 support broke, further price declines were noted. This movement, especially as DOT dipped below established support on August 1, has created uncertainty among market participants.
Analysts highlight that increased trading activity has intensified DOT’s selling pressure, particularly between 13:45-13:46 UTC and 13:54 UTC, when volumes exceeded 200,000 units and sales were concentrated.
How Are Traders Reacting?
DOT’s technical fluctuations reflect the larger crypto market trend. In the final minutes of recent trading, market equilibrium improved, as evidenced by a reduction in trading volume, suggesting short-term caution from market actors.
“Over the last 24 hours, DOT saw pronounced selling pressure, reducing its price to support zones. The hike in trading volume underscores intensified dumping,” CoinDesk experts noted.
Investors are advised to vigilantly monitor technical levels and market trends, as movements at key support and resistance could heavily influence DOT’s short-term path.
Observations from recent patterns can be synthesized as follows:
- DOT’s price encountered sharp declines, settling at significant support levels.
- Marked increasing trading volumes are linked to heightened selling pressure.
- Resistance levels around $3.68 remain critical for DOT’s future performance.
Continual observation of DOT’s movement through these technical thresholds will be essential in determining its market behavior moving forward.
