DOT underperforms the market with a key support level at $1.83 under pressure

Source: Yellow Original Title: DOT underperforms the market with a key support level at $1.83 under pressure

Original Link: Polkadot’s DOT token drops 2% to $1.84, while the broader cryptocurrency market experiences only slight declines.

This native token of the layer 0 blockchain underperforms the CoinDesk 20 Index, which declined 0.6% over the same period.

Trading volume remains high, 7.8% above the 7-day moving average, according to technical analysis data.

What’s happening

DOT is testing the critical support level at $1.83 after failing to break through the resistance at $1.88.

The price movement of the token reflects technical factors rather than fundamental catalysts.

Based on technical patterns, a confirmed breakout of the current resistance could target a range of $2.00-$2.50.

Mild divergence from the broader market performance suggests sector rotation dynamics rather than a fundamental weakness in Polkadot’s fundamentals.

Immediate support is located in the $1.825-$1.830 range, with selling pressure confirmed at the $1.88 resistance level.

Short positions above $2.00 could be triggered if the token breaks through the current technical barrier, providing upward momentum.

Why it matters

Polkadot faces sustained pressure in December, with the token down approximately 25% over the past month.

This underperformance occurs amid mixed signals in the overall cryptocurrency market.

Technical traders are watching whether DOT can maintain support above $1.83 or if further declines are possible.

High trading volume indicates active price discovery despite a lack of clear fundamental catalysts, with traders eyeing potential moves.

A break above the $1.88 resistance could trigger a momentum-driven rally targeting the psychological $2.00 level.