Polkadot's DOT token experienced an earlier rise of over 2%, but then retreated back to a support level of $3.90. The support zone has been established between $3.90 and $3.91, while resistance is noted at $4.02. During its advance, DOT tested $3.81 before climbing to $4.02, which was backed by substantial trading volume of 4.6 million units. The subsequent pullback to $3.90 signifies strong institutional participation in the market, rather than retail panic, with trading volumes exceeding 320,000 units during the decline phase. This indicates a consolidation pattern is likely forming in the range of $3.91-$3.95 due to institutional accumulation. Recent news includes a commitment of $6 million from the Republic of Paraguay towards a Polkadot-based initiative, demonstrating increasing governmental support for blockchain solutions. Technical analysis reinforces the presence of significant market depth and a clear resistance threshold at $4.02.

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