Grayscale

Drops

would

Polkadot

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 <h3 id="key-takeaways">Key takeaways</h3>
 <ul>
 <li>Polkadot falls roughly 4% as selling pressure returns</li>
 <li>DOT approaches critical $1 support after failed recovery</li>
 <li>Reduced token inflation has not prevented recent losses</li>
 </ul>
 Polkadot has extended its October decline, with DOT falling roughly 4% toward $1.05 as traders question whether the cryptocurrency can defend the psychologically important $1 level.
 The token closed October 24 near $1.05 after trading as high as $1.20 on October 23. That reversal followed another failed recovery attempt and left DOT substantially below the levels reached during its earlier October rally.
 The weakness comes despite Polkadot's efforts to improve its token economics, including a hard supply cap and sharply reduced issuance.Why Is Polkadot Price Falling Today? 
 DOT's latest decline follows several consecutive sessions of selling pressure rather than one clearly identified negative announcement.
 Historical data from <a href="https://www.investing.com/crypto/polkadot-new/historical-data" rel="noopener noreferrer nofollow">Investing.com</a> shows DOT closing near $1.15 on October 20 before declining to approximately $1.11 on October 22, $1.09 on October 23 and $1.05 on October 24.
 The cryptocurrency briefly reached $1.20 during October 23 trading but failed to hold those gains, creating another lower recovery high.
 Selling subsequently pushed DOT toward its October 24 intraday low near $1.02.
 That leaves the $1.00–$1.02 area as an important immediate support region. A sustained breakdown could weaken market confidence and expose lower historical price levels.
 The move follows an earlier <a href="https://coinpaper.com/37463/why-is-polkadot-down-today-dot-falls-5-after-brief-altcoin-rally" rel="noopener noreferrer nofollow">Polkadot selloff</a>, when DOT lost approximately 5% after failing to maintain its October recovery.
 Broader cryptocurrency uncertainty may also be contributing to the weakness, although no specific market event has been established as the direct trigger.Polkadot's Supply Changes Have Not Stopped the Selloff 
 Polkadot's price weakness contrasts with major adjustments to its economic structure.
 The network introduced a maximum supply of 2.1 billion DOT following a governance decision approved in 2025, replacing its previous uncapped issuance framework.
 The first major issuance reduction took effect in March 2026, significantly reducing the number of new tokens created annually.
 Coinpaper previously covered the <a href="https://coinpaper.com/11029/polkadot-dao-approves-first-ever-hard-cap-on-dot-supply" rel="noopener noreferrer nofollow">supply cap approval</a> and the accompanying changes designed to make DOT issuance more predictable.
 However, lower inflation does not automatically generate buying demand.
 Existing token holders can still sell their positions, while institutional and retail demand may be insufficient to absorb that supply during periods of weak market sentiment.
 Polkadot also gained regulated investment exposure through the <a href="https://coinpaper.com/15230/dot-price-prediction-ahead-of-21-shares-polkadot-etf-launch" rel="noopener noreferrer nofollow">21Shares Polkadot ETF</a>, which began trading in March.
 Meanwhile, <a href="https://coinpaper.com/34098/grayscale-pulls-out-cardano-hedera-and-polkadot-trust-etf-filings" rel="noopener noreferrer nofollow">Grayscale withdrew</a> its separate Polkadot trust ETF registration in August, illustrating how institutional investment products have followed different paths.DOT Price Prediction: Could Polkadot Fall Below $1? 
 Polkadot's immediate challenge is defending the $1.00–$1.02 support area.
 A sustained break below $1 could bring $0.95 into focus as a conditional downside target, followed by $0.90 if selling accelerates.
 Conversely, a recovery above $1.09–$1.11 would improve the short-term picture, with $1.15 and $1.20 representing the next resistance areas.
 A move from $1.05 to $1.20 would require approximately 14% upside.
 Polkadot's longer-term strategy includes the proposed <a href="https://coinpaper.com/5930/gavin-wood-signals-next-steps-for-polkadot-s-revolutionary-jam-protocol-at-sub0-reset" rel="noopener noreferrer nofollow">JAM architecture</a>, designed to make network computing resources more flexible.
 Its existing <a href="https://coinpaper.com/5433/polkadot-upgrades-with-agile-coretime-transforming-resource-allocation-and-unlocking-a-new-era-of-efficiency-and-scalability-for-the-ecosystem" rel="noopener noreferrer nofollow">Agile Coretime system</a> also reflects efforts to improve network efficiency.
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Polkadot Price Drops 4% as DOT Slides Toward $1 and Fails to Hold Recent Recovery

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