The pair fell below key support on Wednesday, plunging 3% to $1.83 as technical selling overwhelmed bullish USDC consolidation news.
Despite Coinbase (COIN) announcing direct support for the Polkadot network, DOT decisively fell below the psychological bottom line of $1.90.
According to CoinDesk Research’s technical analysis model, heavy distribution occurred over the last two trading hours, with the coin plummeting from $1.93 to $1.82, with stops passing through multiple support areas.
The model shows that trading volume surged to 9.47 million tokens, which is 340% higher than the 24-hour average.
The model says this surge confirms institutional allocations at the $1.95 level.
According to the model, this breakdown creates clear bearish momentum with a lower high than the $1.92 peak.
The broader cryptocurrency market also fell. At the time of publishing, the CoinDesk 20 index was down 2%.
Technical analysis:
- After $1.90 psychological level fails, main support lies at $1.82 demand zone
- Resistance is currently at the breakout level of $1.90, with secondary hurdle at the $1.95 rejection point
- The subdivided trading volume is 340% of the 24-hour moving average to confirm the institutional distribution
- A descending channel broke out from the $1.92 high through the $1.90 support.
- Lower highs structure establishes bearish medium-term bias
- Failure to break above $1.95 poses risk of double top formation
- Any recovery attempt will have to hold immediate resistance at $1.90 as support
- If current support fails, downside risk extends to the $1.75-1.80 area
- A recovery above $1.95 is needed to offset the bearish technical structure and resume the uptrend
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and reviewed by our editorial team for accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
