crashed through critical support on Wednesday, falling 3% to $1.83 as technical selling overwhelmed bullish USDC integration news.
DOT decisively broke below the $1.90 psychological bottom despite Coinbase (COIN) announcing direct Polkadot network support.
Heavy distribution occurred during the last two trading hours, according to CoinDesk Research’s technical analysis model, as the token collapsed from $1.93 to $1.82 and stop-losses cascaded through multiple support zones.
The model showed volume rising to 9.47 million tokens, or 340% above the 24-hour average.
This increase confirmed institutional allocation at the $1.95 level, the model said.
The breakdown established clear bearish momentum with lower highs from the top of $1.92 according to the model.
Broader crypto markets also fell. The CoinDesk 20 index was 2% lower at press time.
Technical analysis:
- Primary support established at $1.82 demand zone after $1.90 psychological level failed
- Resistance now sits at broken $1.90 level, with secondary barrier at $1.95 rejection point
- Distribution volume of 340% of 24-hour average confirmed institutional distribution
- Descending channel formed from $1.92 high to $1.90 support break
- Lower highs structure established bearish intermediate bias
- Failed breakout above $1.95 created double-top formation risk
- Immediate resistance at $1.90 should hold as support on any recovery attempt
- Downside risk extends towards $1.75-1.80 zone if current support fails
- Recovery above $1.95 is needed to negate bearish technical structure and resume uptrend
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
