surrendered earlier gains in a sharp reversal on Tuesday to trade 3.3% lower over the past 24 hours.
The token underperformed broader crypto markets. The Coindesk 20 index was 1.3% lower at press time.
DOT volume ran 17% higher than the 30-day moving average, suggesting institutional distribution rather than retail capitulation, according to CoinDesk Research’s technical analysis model.
The model showed that the day began with DOT rising to $2.17 on strengthening participation, tracking closely with the broader cryptocurrency complex.
Resistance in the $2.24-2.26 zone rejected a breakout attempt, setting the stage for the subsequent collapse, according to the model.
The price deterioration accelerated as the DOT cut through multiple support zones in three different capitulation waves, the model said.
This breakdown below the critical support level of $2.19 completely negated daily gains and exposed portfolio managers to heightened volatility risk.
Technical analysis:
- Immediate resistance is now established at $2.19
- Critical support at $2.14-2.15 demand zone
- 24-hour volume rose 17% above the 30-day moving average
- Failed breakout at $2.26 confirmed strong resistance zone
- Steep downtrend with lower highs of $2,203, $2,191, $2,187 and $2,167
- The technical structure changed decisively bearish
- Recovery resistance: $2.19 needs to be recovered to cancel collapse
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.
