Polkadot's native token DOT fell 3% to $1.83 on Wednesday, breaking below the key $1.90 support level despite positive news on Coinbase integration. Strong selling pressure led to a volume spike 340% above average, signaling institutional distribution. The broader crypto market also declined, with the CoinDesk 20 index down 2%.
Polkadot's DOT token experienced a sharp decline on Wednesday, dropping from $1.91 to $1.84 over the past 24 hours and crashing through critical support at $1.8131. This 3% tumble to $1.83 occurred despite announcements from Coinbase about direct support for the Polkadot network, highlighting how selling pressure overwhelmed bullish developments.
According to CoinDesk Research's technical analysis model, heavy distribution emerged in the final two trading hours, with DOT collapsing from $1.93 to $1.82. Stop-loss orders cascaded through multiple support zones as volume surged to 9.47 million tokens—340% above the 24-hour average. This confirmed institutional selling at the $1.95 level, establishing bearish momentum characterized by lower highs from the recent $1.92 peak.
The breakdown formed a descending channel from the $1.92 high through the failed $1.90 psychological floor. Primary support now lies at the $1.82 demand zone, while resistance is at the broken $1.90 level and the $1.95 rejection point. A failed breakout above $1.95 earlier raised risks of a double-top formation.
If current support holds, immediate resistance at $1.90 must be reclaimed for any recovery. However, downside risks extend toward the $1.75-$1.80 zone should $1.82 fail. Recovery above $1.95 would be needed to negate the bearish structure and resume an uptrend.
The wider crypto markets mirrored this reversal, with the CoinDesk 20 index falling 2% at publication.
