The digital asset market shows a notable divergence in the performance of the main layer 1 networks during the end of 2025. Currently, Polkadot’s native token has experienced a 2% decline, placing its valuation around 1.84 dollars. For this reason, the Polkadot DOT price prediction remains under rigorous technical analysis due to the lack of clear fundamental catalysts.
According to analyst Will Canny from CD Analytics, this movement primarily responds to technical factors and sector rotation dynamics. The trading volume recorded recently was 7.8% above its seven-day moving average. Commercial activity reflects a process of organic discovery amidst the current volatility. Additionally, experts point out that the asset has shown relative weakness compared to the CoinDesk 20 index. The underperformance of DOT highlights a capital rotation towards other sectors of the ecosystem.
In terms of market structure, the asset is working in a volatile consolidation pattern near critical levels. Selling pressure has been persistently confirmed in the immediate resistance zone of 1.88 dollars. The price struggles to maintain the base support located in the 1.83 dollars range. Likewise, analysis models suggest that the current price action is dominated by specific graphical setups. The absence of fundamental news has left control entirely in the hands of technical indicators.
Will Polkadot’s technical structure manage to boost a rebound towards the two-dollar level?
However, the outlook could change drastically if a structural breakout occurs above the mentioned resistance levels. A successful technical break would establish bullish targets in the range between 2.00 and 2.50 dollars per unit. Short position liquidation levels act as catalysts potential for a rapid upward movement. Therefore, investors closely monitor the formation of higher lows from the established support base. A breach of 1.88 dollars would open the door to a significant recovery of the value.
On the other hand, the year 2025 has been characterized by a decoupling between network usage and price. Despite institutional milestones and the increase in total value locked, many layer 1 tokens have had flat returns. Institutional adoption has not necessarily translated into a proportional increase in market prices. Thus, the cryptocurrency faces a scenario where structural progress collides with stagnant price action. The L1 sector has had difficulty capturing value effectively during this annual cycle.
Downside risk remains present, especially if the support in the 1.825 to 1.830 dollar zone fails to hold. A loss of these levels would require constant monitoring due to the possibility of further corrections in the short term. Immediate support at 1.825 dollars is vital to avoid a further drop in the asset. It is also fundamental to consider that ecosystem narratives and application revenues will define the course in 2026. Future perspectives will depend on Polkadot’s ability to convert its technical usage into market demand.
