Key points
- Polkadot fell approximately 4% as selling pressure returned.
- After failing to sustain its rebound, DOT is approaching the key $1 support level.
- The decrease in token inflation has not halted the recent downward trend.
Polkadot has continued its decline since October, with DOT falling approximately 4% to around $1.05, prompting traders to question whether the cryptocurrency can hold the psychologically significant $1 level.
The token closed at approximately $1.05 on October 24, after reaching as high as $1.20 intraday on the previous day, October 23. The trend then reversed due to another failed rebound, leaving DOT significantly below the levels it reached during its earlier October rally.
Despite Polkadot improving its tokenomics through a fixed supply cap and significant reductions in issuance, the price remains weak.
Why is Polkadot's price down today?
The latest decline in DOT is primarily the result of accumulated selling pressure over several consecutive trading days, rather than being triggered by any specific negative news announcement.
Historical data from Investing.com shows that DOT closed at approximately $1.15 on October 20, then declined to about $1.11 on October 22, $1.09 on October 23, and further dropped to $1.05 on October 24.
This cryptocurrency briefly touched $1.20 during trading on October 23 but failed to hold its gains, forming another lower reaction high.
Subsequent selling pressure pushed DOT to around $1.02, near the intraday low on October 24.
This means the $1.00 to $1.02 range has become a significant immediate support area. If this range is sustainably broken below, it could undermine market confidence and push prices further toward lower historical levels.
Previously, Polkadot also experienced a sell-off, during which DOT fell approximately 5% after failing to sustain its October rebound.
Broader cryptocurrency uncertainty may also be weighing on prices, although no specific market event has been confirmed as the direct trigger.
Polkadot's supply changes did not prevent selling.
Polkadot's weak price contrasts with significant adjustments to its economic structure.
Following a governance decision approved in 2025, the network introduced a maximum supply cap of 2.1 billion DOT, replacing the previous unlimited issuance framework.
The first major issuance reduction takes effect in March 2026, significantly decreasing the annual number of newly minted tokens.
Coinpaper previously reported the approval of this supply cap and accompanying adjustments, designed to make DOT issuance more predictable.
However, lower inflation does not automatically generate buying demand.
Existing token holders can still sell their holdings, and during periods of weak market sentiment, demand from both institutional and retail investors may be insufficient to absorb this supply.
Polkadot has also gained regulated investment exposure through the 21Shares Polkadot ETF, which began trading in March.
Meanwhile, Grayscale withdrew its separate Polkadot Trust ETF registration in August, indicating that the pathways for institutional investment products are not the same.
DOT Price Prediction: Will Polkadot Fall Below $1?
The immediate challenge facing Polkadot is defending the support zone between $1.00 and $1.02.
If the price continues to break below $1, $0.95 may become a conditional downside target; should selling pressure accelerate, $0.90 could also come into view.
Conversely, if the price rebounds above $1.09 to $1.11, the short-term outlook will improve, with $1.15 and $1.20 becoming the next resistance levels.
An increase from $1.05 to $1.20 represents approximately a 14% upside.
Polkadot’s long-term strategy includes the proposed JAM architecture, designed to make network computing resources more flexible.
Its existing Agile Coretime system also reflects efforts to improve network efficiency.