Polkadot has experienced a 2% drop in the last 24 hours, placing the price of its native token, DOT, at $1.84. According to the latest data from CoinDesk Research, this movement reflects a Polkadot market performance lower than that of other major digital assets. Therefore, selling pressure at current price levels suggests a technical consolidation phase that concerns financial analysts and retail traders this week.
The token has encountered a significant barrier at the technical resistance of $1.88, where strong selling activity was recently confirmed. However, trading volume increased by 7.8 percent above its seven-day moving average during the last daily session.
This indicates that, despite the fall, there is organic price discovery occurring driven by interest from active retail traders. Likewise, immediate support has been firmly established in the zone between $1.825 and $1.830 right now.
On the other hand, experts suggest that this divergence does not respond to fundamental weaknesses in Polkadot’s network architecture. Instead, the phenomenon seems to be due to a rotation of capital within different sectors of the digital economy.
In this way, technical factors are dominating the price action in the absence of clear fundamental catalysts during this Monday. Therefore, the analysis of graphic price trends is vital to understand the direction the asset will take.
Can the Polkadot ecosystem break its bearish trend and reach $2.50 soon?
Regarding bullish projections, a structural breakout of the current pattern could catapult the value toward much more ambitious goals. If the price manages to overcome the resistance, the token would seek the range between the $2.00 and $2.50 dollar price marks.
Additionally, short position liquidations at higher levels would act as a potential catalyst to accelerate this market recovery. However, constant monitoring of critical support levels will be necessary to avoid much deeper falls soon.
On the other hand, the general outlook for Layer 1 platforms during 2025 has been quite complex and challenging. Despite institutional progress, many tokens have shown flat returns or negative figures at the close of this annual cycle.
As a result, the decoupling between network usage levels and asset price is a growing trend in the industry. Furthermore, technological maturity does not always translate into immediate benefits for holders of assets in the global blockchain space.
Finally, the future of the network will depend on its ability to attract new applications and constant institutional capital flows. Investors are expected to remain cautious while the token navigates through this highly volatile consolidation pattern.
Therefore, stability in key support price levels will be decisive in building a solid base for future recovery. Similarly, monitoring general market indices closely will provide crucial clues about the next movement of leading cryptocurrencies.
