Polkadot’s DOT earlier Thurwday rose more than 2%, with institutional volume patterns suggesting professional participation, according to CoinDesk Research’s technical analysis model.

The model showed the digital asset demonstrating textbook institutional accumulation behavior, initially testing support at $3.81 before executing a measured advance to $4.02 accompanied by substantial volume of 4.6 million units.

Trading volumes exceeding 320,000 units during the initial decline phase indicate institutional repositioning rather than retail panic, with subsequent buying interest establishing clear support levels around $3.90-$3.91, according to the model.

The move higher in Polkadot reversed though, with the price slipping back to that $3.90 support.

On the news front, the Republic of Paraguay has committed $6 million to a Polkadot-based tokenization initiative, according to a post on X , a landmark government endorsement of blockchain technology for sovereign infrastructure development.

Technical Analysis:

• DOT established a trading range of $0.21 representing 5.2% volatility between $3.81 floor and $4.02 ceiling during 24-hour session
• Professional support formation confirmed at $3.90-$3.91 levels with institutional buying interest
• Resistance threshold identified at $4.02 with volume-driven price discovery mechanisms
• Institutional volume patterns exceeding 320,000 units indicate sophisticated market participation
• Recovery trajectory from $3.81 to $4.02 supported by 4.6 million trading units demonstrating market depth
• Consolidation range between $3.91-$3.95 suggests institutional accumulation during market weakness

.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.