On November 3, 2025, Polkadot (DOT) experienced a significant technical breakdown, plummeting 12% as bearish momentum overpowered a key support level. This sharp decline was part of a broader market downturn but was exacerbated by a substantial, concentrated sale of DOT tokens.
A Key Support Level Succumbs to Pressure
The trading session on November 3rd was defined by a decisive break below the critical $2.87 support zone. This technical failure triggered a cascade of selling that drove the price of DOT down to $2.56, marking a 12% single-day drop. The scale of the selling pressure was exceptional, with a single wave of institutional-sized orders moving 5.49 million tokens—more than double the 24-hour average volume—saturating the market and overwhelming buyer defenses.
This sell-off occurred against a backdrop of general risk aversion in the crypto market, but Polkadot’s technical posture was already weak. Leading up to the drop, DOT was trading below all its major moving averages, including the 50-day Simple Moving Average (SMA) at $3.65 and the 200-day SMA at $3.96, confirming a sustained bearish trend.
The Road to Recovery and Key Levels to Watch
In the wake of the decline, the market structure for Polkadot has shifted. The former support zone between $2.80 and $2.82 has now turned into immediate resistance, and the primary support has moved lower. Technical analysis suggests the next key support level to watch is $2.77. A failure to hold above this level could intensify selling pressure and open the path for a test of lower supports. For any sign of a potential recovery to be taken seriously, buyers must push the price back above the psychologically important $3.00 level.
Context Amidst the Red: A Look at Polkadot’s Fundamentals
Despite the challenging short-term price action, it’s important to consider developments within the Polkadot ecosystem. The network continues to see governance activity and strategic investments. In Q3 2025, the Polkadot DAO voted to implement a permanent supply cap of 2.1 billion DOT tokens, a significant economic reform that aligns its tokenomics with other major assets like Bitcoin and Ethereum. Furthermore, the community continues to fund ecosystem growth, approving millions for infrastructure, development, and flagship events like the Sub0 conference, aiming to attract external developers and users.
For investors and traders, the immediate outlook remains cautious. The breach of a major support level, confirmed by high volume, indicates dominant bearish control. The path of least resistance is currently downward, and the market will be closely watching to see if the new, lower support levels can hold or if the recent breakdown triggers a further leg down.
