Polkadot's 97% crash from 2021 peak leaves traders eyeing key levels

Polkadot (DOT) has seen a dramatic fall since its peak in 2021. The cryptocurrency, once trading above $55, now sits at around $1.43—a drop of roughly 97.8%. Analysts are closely watching key price levels to determine whether a recovery is possible or if further declines lie ahead.

DOT's sharp decline began after its all-time high in May 2021. That year, the token surged by about 4,529%, climbing from around $3 to over $57. The rally was fuelled by a broader crypto boom, Bitcoin's rise above $50,000, and growing interest in decentralised finance (DeFi) and NFTs. Polkadot's unique multi-chain interoperability also played a role in its rapid ascent.

A breakdown below $3.20 later confirmed a bearish shift in DOT's structure. Since then, the token has remained in a long-term corrective phase, struggling to regain momentum. Currently, analysts highlight a high-risk accumulation zone between $1.10 and $1.30. A weekly close below $1.20 would invalidate any short-term recovery thesis. For a bullish reversal, DOT must reclaim and hold above $4.50. This move would signal a breakout from its descending channel and a potential shift in market sentiment. Key resistance levels for further recovery include $4.47, $9.33, $22.27, and ultimately $51.75—the area near its previous peak.

Polkadot's price action remains under pressure, with $1.20 acting as a critical support level. A sustained move above $4.50 could indicate a change in trend, while a drop below $1.20 would reinforce bearish expectations. Traders and investors are monitoring these thresholds for signs of DOT's next major move.