experienced a technical failure during Friday’s trading session as the token dropped from a peak of $2.09 to $1.97, erasing its former rally momentum.
The drop was seen on significant volume that surged to 284% above normal levels, according to CoinDesk Research’s technical analysis model.
The analysis indicated that the token breached support at $2.05 as selling pressure escalated during this timeframe.
The breakdown quickened on a volume of 10.3 million tokens, confirming the breach of the ascending trendline support that had sustained the recent bullish formation, per the model.
Repeated tests of the $2.05 level cemented this area as significant resistance before the downturn dismantled the technical underpinnings.
Price movements indicated a sharp rejection from higher price points as DOT established an ascending channel from $2.01 to $2.09 before facing substantial sell-off, according to the model.
Broader crypto markets also saw declines, with the CoinDesk 20 index down by 0.6% at the time of publication.
Technical Analysis:
- Primary support around the psychological level of $1.95 after the breakdown at $2.05
- Immediate resistance at $1.985 following unsuccessful recovery efforts
- Critical ascending trendline support breached during the downturn
- Significant volume of 10.3 million signifies a 284% increase over 24-hour average
- Peak hourly volume of 995K indicates a 400% rise above session baseline
- Increased volume affirms technical breakdown rather than undermining its legitimacy
- Formation of ascending channel from $2.01-$2.09 ends with sharp rejection
- Current price action is contained within a consolidation range of $1.95-$2.01
- Potential downside target nears $1.90 if support at $1.95 fails to hold
- A recovery necessitates reclaiming $2.00 resistance with confirmation of volume
Disclaimer: Some parts of this article were created with the help of AI tools and reviewed by our editorial team to ensure precision and compliance with our standards. For more details, refer to CoinDesk’s comprehensive AI Policy.
