Polkadot (DOT) extended its downward momentum in October, with the cryptocurrency falling around 4% to trade near $1.05. The latest move marks a continuation of DOT’s recent losses and has drawn attention to the critical $1 support level.
DOT struggles to hold key support
On October 24, Polkadot closed close to $1.05, down from an intraday high of $1.20 reached on October 23. This decline followed another failed recovery attempt, positioning DOT well below its levels from the earlier October rally.
Despite several sessions of selling pressure, no single negative event triggered the drop. Instead, weak sentiment has dominated, leaving DOT vulnerable as traders question the ability to defend the psychologically important $1 mark.
Historical pricing data indicates DOT traded near $1.15 on October 20, slid to $1.11 on October 22, then dropped further to $1.09 on October 23, before reaching $1.05. During this period, however, DOT briefly reclaimed $1.20, only to lose ground again, making that high another failed reversal point.
During October 24 trading, DOT’s low approached $1.02. Analysts are watching the $1.00–$1.02 region as a crucial near-term support zone, warning that a decisive break below could further undermine market confidence and put even lower price levels at risk.
DOT’s latest decline has come amid consecutive sessions of selling and a lack of clear positive momentum, heightening concern over whether it can maintain support at $1.00.
Supply reforms and institutional products show limited impact
Polkadot, a blockchain project designed to enable cross-chain interoperability and custom network creation, recently enacted significant economic changes. The network established a fixed maximum supply of 2.1 billion DOT in 2025, replacing its earlier approach of uncapped issuance. This governance decision sought to make token economics more predictable and potentially more appealing to long-term holders.
In March 2026, Polkadot executed a major reduction in new token issuance, sharply decreasing annual inflation. Despite these reforms, DOT has not seen sustained upward pressure, as ongoing weakness suggests investor demand may be insufficient to absorb current supply, especially amid broader crypto market uncertainty.
Institutional investor access to Polkadot also evolved this year. The 21Shares Polkadot ETF began trading in March, providing a regulated exposure path for professional and retail investors. In contrast, Grayscale withdrew its proposal for a separate DOT trust ETF in August, highlighting differing strategies among asset managers.
Mini dictionary: 21Shares Polkadot ETF – An exchange-traded fund by 21Shares that allows investors to gain regulated exposure to Polkadot’s token (DOT) through traditional financial markets.
| Product | Status | Date |
|---|---|---|
| 21Shares Polkadot ETF | Launched | March 2026 |
| Grayscale DOT Trust ETF | Withdrawn | August 2026 |
Key price levels and protocol upgrades ahead
Looking forward, Polkadot’s immediate challenge is to hold the $1.00–$1.02 support zone. If DOT breaks below these levels, focus may shift to downside targets at $0.95 and even $0.90 should negative momentum intensify. Conversely, a recovery above $1.09 or $1.11 would improve the outlook, with further resistance at $1.15 and $1.20. A rally from $1.05 to $1.20 would represent a roughly 14% price surge.
Beyond price movements, Polkadot is working on upgrades to its underlying technology. The network’s planned JAM architecture aims to provide more flexibility in computing resources. Meanwhile, the Agile Coretime system is designed to boost network efficiency.
Mini dictionary: JAM architecture – A proposed upgrade for Polkadot aiming to make network computing resources more customizable and efficient for various use cases.
Traders are closely monitoring support at $1.00–$1.02, as a sustained drop below this range could expose Polkadot to historically lower price levels and erode market confidence.
