Polkadot’s DOT fell sharply in late December 2025, underperforming broader crypto indices and renewing concerns about liquidity and adoption. The token dropped as much as 4.5% to $1.75, extending a 30‑day decline of 28.3% and leaving DOT lagging market peers.
DOT’s recent price action has been marked by thin participation and shallow market depth. Trading volumes tracked about 9% below 30‑day averages, and market depth on leading venues measured only $500.000–$800.000, making the token more vulnerable to outsized moves.
A 24‑hour sell‑off saw volume spike—at times above recent averages—yet failed to restore sustainable demand, underlining a lack of consistent institutional participation.
Technical indicators signposted strained momentum. DOT breached a key 23.6% Fibonacci support at $2.45 and dropped beneath the $2.00 zone, testing lows near $1.75; resistance sits in the $1.90–$2.00 and $2.30–$2.33 bands. The Relative Strength Index (RSI) registered in the mid‑30s, indicating weak momentum; the RSI measures price momentum on a 0–100 scale, with values below 30 typically read as oversold.
The Money Flow Index (MFI) fell to around 16, suggesting significant outflows. Analysts noted minor bullish divergences in MACD histograms, but overall trend signals remained negative until DOT reclaims the highlighted resistance zones.
Polkadot market and trading metrics
Technical weakness has been compounded by structural and adoption challenges. Critics point to a limited roster of mainstream “killer apps” and a steeper developer learning curve tied to Rust and Substrate; crypto trader Nonzee summarized this as a contributing factor, saying Polkadot “lacks killer apps” and that its developer tools are harder to learn than those on some rival chains.
Low daily active users and muted on‑chain activity—reported at under 5.000 daily users across parachains—have reduced on‑chain demand for the token.
Tokenomics and macro headwinds also played roles. Polkadot’s “Hard Pressure” model with a 2,1 billion token cap and scheduled biennial issuance reductions aims at long‑term stability but has not prevented periodic sell pressure from token unlocks. Broader market conditions—chiefly a cautious Federal Reserve path on easing in 2026 and regulatory uncertainty—further discouraged allocators from altcoins. The SEC’s delayed decision on the 21Shares Polkadot ETF application has added near‑term bearish pressure.
DOT’s recent underperformance reflects a mix of shallow liquidity, broken technical support and slow adoption despite protocol upgrades. The token’s recovery depends on reclaiming resistance around $1.90–$2.30, growing on‑chain activity, and clarity on regulatory milestones.
