It crashed into critical support on Wednesday, falling 3% to $1.83, as technical selling overwhelmed bullish news on USDC integration.
DOT decisively broke below the psychological floor of $1.90 despite Coinbase (COIN) announcing direct support for the Polkadot network.
According to CoinDesk Research’s technical analysis model, a strong distribution emerged during the last two hours of trading, as the token collapsed from $1.93 to $1.82 and stop-losses cascaded through multiple support zones.
The model showed that volume spiked to 9.47 million tokens, or 340% above the 24-hour average.
This increase confirmed the institutional distribution at the $1.95 level, according to the model.
According to the model, the breakout established clear bearish momentum with lower highs from the high of $1.92.
Broader crypto markets also fell. The CoinDesk 20 index was 2% lower at press time.
Technical analysis:
- Primary support established at $1.82 demand zone after $1.90 psychological level failed
- Resistance now lies at the broken $1.90 level, with the secondary barrier at the $1.95 rejection point.
- Breakout volume of 340% of the 24-hour average confirmed institutional distribution
- Descending channel formed from the high of $1.92 to the break of the support of $1.90
- Lower high structure established medium-term bearish bias
- Failed breakout above $1.95 created risk of double top formation
- The immediate resistance at $1.90 should hold as support in any recovery attempt.
- Downside risk extends towards $1.75-$1.80 zone if current support fails
- A recovery above $1.95 is needed to nullify the bearish technical structure and resume the uptrend.
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and were reviewed by our editorial team to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI Policy.
