The digital asset ecosystem is facing a day of significant setbacks, led by Polkadot (DOT), which has lost 3% of its market value. This bearish movement has pushed the token’s price down to $1.83, breaking critical technical support levels that analysts were watching closely. According to market reports, heavy selling pressure managed to override the optimism generated by recent Coinbase integration news.
Despite Coinbase announcing direct support for the Polkadot network, the market failed to react favorably in the long term. During the last two trading hours, heavy asset distribution emerged that crashed the price from $1.93 to session lows. Thus, initial positive sentiment transformed into a cascading liquidation that affected the confidence of retail investors and day traders alike.
DOT’s trading volume spiked 340% above the daily average during the final support breakdown on Wednesday. This unusual surge in activity suggests a massive exit of institutional capital at the $1.95 psychological level per unit. Therefore, the asset’s technical structure now shows a clear bearish trend, characterized by lower highs on short-term price charts.
Can Polkadot’s infrastructure withstand selling pressure in the digital economy?
DOT’s negative performance is not an isolated event, as the CoinDesk 20 index also reported a 2% decline. This trend has directly impacted crypto linked stocks, which typically move in tandem with the volatility of major digital assets. Furthermore, the company Coinbase, despite its efforts to expand network interoperability, could not prevent market apathy from dominating the session.
On the other hand, technical analysts warn that the $1.90 level, which previously served as a floor, now acts as a difficult resistance to overcome. Additionally, there is a latent risk that the price could head toward the $1.75 zone if demand does not appear soon. The formation of a “double top” pattern at $1.95 confirms that sellers maintain absolute control over the current price action.
Finally, for Polkadot to invalidate this bearish structure, it would need to convincingly regain the $1.95 mark in the coming days. However, medium-term perspectives remain cautious due to the uncertain macroeconomic environment surrounding the digital economy. Meanwhile, traders must pay close attention to demand levels near $1.82 to avoid a larger capitulation in the following hours.
