Affected by the downturn in the cryptocurrency market, Polkadot's DOT fell 3% to $1.83.
DOT$ 1.8413On Wednesday, DOT fell below a key support level, dropping 3% to $1.83 (UTC+8), as technical selling outweighed the bullish news of USDC integration.
Despite Coinbase (COIN) announcing direct support for the Polkadot network, DOT decisively broke below the psychological threshold of $1.90.
According to CoinDesk Research's technical analysis model, there was a significant sell-off in the last two trading hours, with the token price plunging from $1.93 (UTC+8) to $1.82 (UTC+8), and stop-loss orders also breaking through multiple support zones.
The model shows that trading volume surged to 9.47 million tokens, 340% higher than the 24-hour average.
The model indicates that this (increase) confirms that institutional investors have sold off the price to $1.95 (UTC+8).
According to the model, this decline has established clear downward momentum, with the price starting to fall from the peak of $1.92 (UTC+8).
The broader cryptocurrency market also experienced a decline. As of press time, the CoinDesk 20 Index was down 2%.
Technical Analysis:
- After the psychological threshold of $1.90 (UTC+8) was breached, the main support formed in the $1.82 (UTC+8) demand zone, and after the psychological threshold of $1.90 (UTC+8) was breached, the main support was established in the $1.82 (UTC+8) demand zone.
- The current resistance is near the broken $1.90 (UTC+8) level, with secondary resistance near $1.95 (UTC+8).
- The crash volume reached 340% of the 24-hour average confirmed institutional distribution volume.
- A descending channel formed from the $1.92 (UTC+8) high to the break of the $1.90 (UTC+8) support level.
- The lower peak structure confirms a medium-term bearish bias.
- The failure to break above $1.95 (UTC+8) creates a risk of a double top pattern.
- The immediate resistance at $1.90 (UTC+8) must hold to serve as support for any rebound attempts.
- If the current support fails, downside risk will expand to the $1.75-$1.80 region.
- The price needs to recover above $1.95 (UTC+8) to reverse the bearish technical pattern and resume the upward trend.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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