Polkadot News Today: Polkadot Struggles to Keep Pace With Rallying Crypto Market

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Polkadot (DOT) continues to draw attention in the cryptocurrency markets, but its recent performance has left it trailing behind broader market gains. On Monday, December 8, 2025, the token rose 0.8% to $2.12, a modest gain compared to the 2.8% rise in the CoinDesk 20 (CD20) index, a key benchmark for the sector. Despite a 26% surge in trading volume over the seven-day average, which signals increased institutional activity, DOT remains unable to fully align with the bullish momentum seen in other cryptocurrencies according to CoinDesk Research's analysis.

Technical indicators highlight the struggle Polkadot faces in maintaining upward momentum. The token's inability to break through key resistance levels has caused concerns over investor sentiment toward the ecosystem, according to CoinDesk Research's analysis. Recent price action shows DOT forming an ascending trend with higher lows, but this is conflicting with broader bearish patterns in shorter time frames

. The token's inability to hold above critical levels has led to volatility, with a trading range of $0.13 established in the last session.

A significant volume spike occurred when 5.75 million tokens were traded at 134% above the 24-hour average, pushing the price through the $2.12 resistance level. While this breakout suggests deliberate positioning by market participants, it also indicates that profit-taking is outpacing fresh accumulation. The immediate technical outlook for DOT is mixed, with strong support at $2.05 and resistance forming near $2.16 according to technical analysis.

Market Struggles and Investor Hesitation

Polkadot's recent performance is emblematic of the broader altcoin sector's struggles. Despite a 0.8% rise in the last 24 hours, the token underperformed the wider crypto market. The CoinDesk 20 index, which tracks the top cryptocurrencies by market capitalization, rose 2.8% in the same period. This underperformance has led analysts to point to a possible hesitation among investors toward the Polkadot ecosystem according to market analysis. The token's inability to match the crypto market's upward momentum could reflect uncertainty about the platform's long-term adoption or its ability to maintain relevance against faster-growing competitors.

The surge in trading volume—up 26% from the seven-day average—suggests that market participants are actively engaged in DOT, but the relative underperformance indicates a shift toward profit-taking rather than sustained accumulation according to technical indicators. This pattern is not uncommon during periods of market consolidation, especially in a sector still grappling with regulatory and macroeconomic headwinds. Institutional activity, while noticeable, has not been enough to overcome broader bearish sentiment.

Technical and Sector-Wide Trends

The token's price movement is influenced by a combination of technical and sector-wide factors. Over the past week, DOT has faced significant resistance, particularly around the $2.30 level. A failed breakout attempt and subsequent rejection led to a pullback that has left the token in a consolidation phase. This pattern is further compounded by weak altcoin sentiment as Bitcoin dominance rose to 58.7%, drawing capital away from smaller projects.

A bearish reading on the MACD histogram, coupled with a lack of sustained momentum, suggests that the token's upward trajectory is still fragile. The immediate support level at $2.00 has become a critical point of focus, with analysts warning that a break below this threshold could trigger a further decline. The broader market's risk-off mood, as seen in the Altcoin Season Index, adds to the uncertainty surrounding Polkadot's near-term prospects according to market analysis.

Analysts' Outlook and Key Watchpoints

Analysts remain cautious about the token's near-term trajectory, highlighting both bullish and bearish scenarios. On the positive side, DOT's price currently shows signs of a potential rebound, as evidenced by an oversold RSI reading of 36.5. However, without strong bullish volume or a clear catalyst, analysts question whether this could lead to a sustained rally. The token's 24-hour volume has also fallen by 4.89%, signaling reduced interest from traders.

On the bearish side, concerns persist about Polkadot's ecosystem development and tokenomics. Recent reports indicate a 70% drop in daily active addresses since 2023, raising questions about the platform's utility and adoption. Additionally, the September 2025 tokenomics overhaul—capping the supply at 2.1 billion—initially caused a 6% drop as stakers adjusted to lower inflation rewards. These developments have fueled negative sentiment, which could weigh on DOT's price in the near term.

For investors, the key watchpoints will include DOT's ability to defend the $2.00 support level and the broader Bitcoin price action. A drop in Bitcoin below $88,000 could amplify altcoin selling, further pressuring DOT. Conversely, a sustained move above $2.13 could signal a stabilization in the token's price structure and potentially attract fresh buyers.