Polkadot’s native token DOT is facing significant pressure, declining approximately 32% over the past month. The digital asset currently trades near the critical $3.50 support level, historically a pivotal threshold for potential bullish reversals.
Despite this sharp decline, market activity surged. Trading volume increased by 50% during the price drop, pointing to heightened investor engagement and the possibility of shifting sentiment.
Analysts are closely monitoring the situation. Some experts predict the price action near the $3.50 zone could precede an accumulation phase leading to a substantial rally, underscoring its importance for DOT’s near-term trajectory.
On-chain metrics provide a bullish counterpoint to the price fall. Data reveals a net outflow of $1.6 million worth of DOT from exchanges within the last 24 hours, suggesting possible accumulation by long-term holders rather than panic selling.
However, significant risks remain. Broader geopolitical instability, including ongoing Middle East tensions, poses a threat and could exert additional downward pressure on DOT if the crucial $3.50 support level fails to hold.