In the past 24 hours, Polkadot's cryptocurrency (DOT) has experienced a significant decline, losing over 5% under heightened selling pressure.
What Drives the Current Selling Pressure?
The market initially showed resistance, but a surge of selling on August 1 caused a sharp decrease in DOT's value. This wave of sales also resulted in an increase in trading volume, notably surpassing the 24-hour average at critical times. The CoinDesk 20 index reflected a 3.7% dip, indicating a broader decline across the cryptocurrency sector.
Where Does DOT Stand Technically?
Technical assessments reveal that DOT reached an initial peak of $3.87, but subsequent selling pressure increased 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 at $3.68. When the $3.60 support broke, further price declines were noted. This movement, especially when DOT dipped below established support on August 1, has created uncertainty among market participants.
How Are Traders Reacting?
DOT's price fluctuations reflect the larger trend in the crypto market. In the final minutes of recent trading, market equilibrium improved, 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.
Continued observation of DOT's movements through these technical thresholds will be essential in determining its market behavior moving forward.
