Polkadot Price Likely to Crash 13% Despite Recent Protocol Upgrade

Polkadot price suffers bearish pressure despite continued network developments. The latest in the blockchain upgrade is the asynchronous backing which is aimed at improving scalability and parachain interoperability. DOT price dropped 2.8% in the last 24 hours to trade around $5.68 during U.S. business hours.

Low Volume, Open Interest, High L/S Ratio Suggests Investors Are Hoarding

Despite the drop in Polkadot price, on-chain metrics remain bullish. The falling price does not necessarily mean investors are dumping their bags as data from Polkadot Subscan shows daily holder count is at an all-time high of 1.3 million, with 321 new additions onver the last 24 hours. Additionally, daily active users surged by 19.21% and on-chain volume hit an all-time highsignaling the network is active and well.

According to CoinGecko, the 24-hour volume for DOT increased by 23%. However, zooming out, a steady decline in trading volume since July 5, when the asset hit its yearly low, is noticeable. This suggests there is weak buying pressure and a lack of bullish interest.

Additionally, Coinalyze data shows open interest is low, increasing only 0.12% in the last 24 hours. Nevertheless, the Long/Short ratio is 2.83, with 73.86% of traders across exchange betting Long on the asset. This indicates the market may be fearful in the short term, but optimistic in the long term.

Polkadot Price Analysis: DOT Bears Eye $4.91 If They Beat This Obstacle

Polkadot price chart shows a downward trend with the value consistently below the 50-day and 200-day EMAs. Candlestick analysis reveals a potential for the bearish momentum to continue but a major support at the recent psychological low of $5 may hold the price up.

Polkadot price is in a consolidation zone which has lasted about 1.5 months. A break below the $5 support level may result in further downside movement to $4.91 (yearly low). Conversely, if bulls prevail, DOT price may encounter major resistanc around $6.17 (50-day EMA) and a relatively small barrier around $6.77 (200-day EMA). Beyond this, $7.00 presents a strong resistance level.

The Relative Strength Index (RSI) is at 40.90, indicating bearish momentum but approaching oversold territory. The Chaikin Money Flow (CMF) is at 0.04, showing neutral to slightly positive money flow. This suggest capital inflow to Polkadot is minimal but still present.

The Moving Average Convergence Divergence (MACD) is below the signal line, indicating bearish momentum. Overall, the technical indicators suggest Polkadot price may continue in a corrective wave downwards, likely testing lower support levels.

Daily DOT holder count is at an all-time high of 1.3 million, while daily active users surged by 19.21%.
Positive on-chain metrics suggest DOT price crash is may not be internal issue.

Frequently Asked Questions (FAQs)

1. What does the high Long/Short (L/S) ratio for DOT indicate?

The high L/S ratio of 2.83, with 73.86% of traders betting Long on DOT, indicates that while the market is fearful in the short term, there is optimism in the long term.

2. What recent protocol upgrade has Polkadot undergone?

Polkadot recently implemented an upgrade called asynchronous backing, which aims to improve scalability and parachain interoperability.

3. What is the overall outlook for Polkadot's price?

The overall outlook indicates that Polkadot's price might continue to drop, potentially testing lower support levels. Nevertheless, positive on-chain metrics suggest that the price decline may not stem from internal network issues.

✓ Share:

• Trending
• Price Analysis

• Wall Street’s CPI Forecast: Expert Examines if Bitcoin Price Can Sustain Triangle Breakout?
• Avalanche Seeks $1B to Launch Treasury-Focused AVAX Firms in U.S.
• Dogecoin Leads Crypto Market Rally, Expert Sees $0.50 Target on DOGE ETF Launch
• Ethereum News: Latest On-chain Activity Hints Massive ETH Purchase by Bitmine (BMNR) and SharpLink (SBET)
• VanEck Pushes for Staked Hyperliquid ETF in US, Expects HYPE Coinbase Listing Soon

• Pump Price Forecast as $12M Buyback Fuels Scarcity — Is $0.01 in Sight?
• SUI Price Prediction as Mysten Labs Meets SEC Ahead of ETF Decision—Is $7.5 Next?
• Can Dogecoin Price Hit $1 as Derivative Volume Jumps Ahead of DOGE ETF Launch
• Bitcoin Price Prediction Eyes $150K as Trump Calls for Aggressive 100 BPS Rate Cut
• Solana Price Prediction: Can Nasdaq Listing and $94M Holdings Propel SOL Toward $400?

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.