dropped 4.5% to $1.75 in the past 24 hours, lagging behind the broader cryptocurrency market.
The CoinDesk 20 index, a key market indicator, was down 2.5% at the time of this report.
The decline in DOT was noted on particularly low trading volume, which was 9% lower than the 30-day averages, indicating a lack of institutional involvement that usually propels significant price movements, as per CoinDesk Research’s technical analysis.
The analysis indicated that DOT showed relative weakness compared to the overall cryptocurrency sector, as capital shifted towards higher-momentum assets.
This divergence suggests a diminishing appetite from investors for the token, despite recent developments in its ecosystem, with market players looking for clearer catalysts before increasing their positions significantly, according to the analysis.
With a lack of fundamental drivers, technical levels influenced price movements, as DOT approached crucial support levels, the analysis noted.
Technical Analysis:
- Primary support level established at $1.76
- Range-bound structure remains as the market awaits a clear directional cue
- Participation decreased 9% below the 30-day moving average during the rise
- Institutional flow has been noticeably absent in recent sessions
- Sideways consolidation pattern persists within defined bounds
- Downside risk appears limited due to moderate price increases and support defense
- Upside potential is restricted by volume concerns and relative weakness
Disclaimer: Portions of this article were generated with AI assistance and subsequently reviewed by our editorial team to guarantee accuracy and compliance with our standards. For further details, please refer to CoinDesk’s complete AI Policy.
