Polkadot (DOT) is consolidating after a sharp decline.

Polkadot (DOT) has experienced significant volatility in the last twenty-four hours. According to CoinDesk Research's technical analysis model, the cryptocurrency decreased by 4%, dropping to a low of 4.07 dollars during the day. During this downturn, trading volume surged to 3.16 million, significantly above the twenty-four-hour average (2.31 million). This situation provided strong volume support at the 4.07 dollar level.

Following this capitulation event, the DOT price returned to a resistance range of 4.15 to 4.18 dollars. The relevant model indicated that institutional buying interest has emerged at lower levels and that a potential stabilization could occur at the current support levels. Notably, Polkadot is set to merge centralized system services under Asset Hub on November 4th, which will transform into Polkadot Hub, the superchain of the ecosystem.

According to the latest trading data, DOT decreased by 4.2%, reaching the level of 4.13 dollars. The broader cryptocurrency market also declined; the CoinDesk 20 market index lost 3.2% of its value. Technical analysis indicates that between 3:00 PM and 4:00 PM on October 8th, 3.16 million units were traded. This figure indicates strong institutional interest. During the price movement, a significant pullback occurred at the 4.07 dollar level, establishing important support. The recovery between 4.14 and 4.16 dollars illustrated the resistance of the support zone within a 60-minute period. Furthermore, the high trading volume in the pullback candles dated 12:21 and 12:33 suggests that institutions made purchases at lower levels. As of 12:15, consolidation around 4.15 to 4.16 dollars presented a possibility of stabilization at the current support levels.