Polkadot Transaction Volume Plunges as DOT Trades Near Key Support

The Polkadot ecosystem experienced a significant drop in transaction activity during the first half of the year, with DOT’s price action reflecting a defined trading range and growing market uncertainty.

According to technical analysis from CoinDesk Research, Polkadot’s native token, DOT, traded within a 4.4% range recently, rallying sharply to $3.46 before undergoing a notable correction. The analysis indicates that solid support has now formed around the $3.32 level—a critical zone currently being tested by the market.

Transaction volume on the Polkadot network fell sharply in the first quarter, sliding 36.9% compared to the previous quarter, down to 137.1 million transactions.

At the time of writing, DOT was down 2.4% over the past 24 hours, hovering near $3.31. The broader market, tracked by the CoinDesk 20 Index, was also down 2.4%.

Technical Analysis Highlights:

• The strongest bullish momentum was recorded between 19:00 and 20:00 UTC on June 30, where above-average trading volume of 1.81 million DOT pushed prices to resistance at $3.46.
• Significant support emerged at $3.32 during the 07:00 UTC hour on July 1, accompanied by high volume of 1.34 million DOT.
• The final trading hours saw renewed selling pressure, with DOT closing near the lower end of its range at $3.33, pointing to bearish sentiment despite a brief recovery attempt around 14:00 UTC.
• A swift rally to $3.36 occurred at 15:06 UTC, marking the hour’s high, but was quickly reversed by intense selling starting around 15:36 UTC.
• Notable volume spikes were observed between 15:31 and 15:32 UTC, totaling 267,000 DOT, suggesting possible institutional selling activity.