Polkadot's native token, DOT, experienced a bearish reversal, dropping 6% from its intraday high of $4.15 to a low of $3.91.
Key Points from On-Chain Analysis:
Sharp Reversal: DOT saw considerable volatility, with a 6% decline in a 24-hour period.
Institutional Liquidation: The price drop was attributed to "exceptionally robust selling volume" from institutional investors.
Contrasting Market Trend: This price action went against the broader crypto market, as the CoinDesk 20 index was slightly up during the same period.
Technical Levels:
Support: A fragile support level has formed near $3.90, with a potential risk of further breakdown.
Resistance: A new resistance level is established at $4.15, following an unsuccessful rally attempt.
Market Structure: The formation of lower highs indicates a deteriorating bearish market structure.
This information is for educational purposes and should not be considered financial advice. Always do your own research (DYOR) before making investment decisions.