Polkadot DOT price selloff analysis: Institutions lead 3.3% drop

Institutions are moving their chips. Polkadot's DOT token plunged below key support levels on Jan 6, 2026, as trading volume surged 17% above its 30-day average. The 3.3% slide to $2.14 wiped out earlier gains and triggered a decisive technical breakdown that outperformed the broader market's 1.3% retreat.

Institutional Distribution Behind the Selloff

According to CoinDesk Research, the Polkadot DOT price selloff analysis suggests institutional distribution rather than retail panic. While the day began with a climb to $2.17, strong resistance in the $2.24-$2.26 zone repelled a breakout attempt, setting the stage for three distinct waves of capitulation.

Broader Market Shifts: AI and Infrastructure

The selloff comes as other major players shift their focus. Riot Platforms recently sold $200 million worth of Bitcoin to fund its Corsicana AI data center, linking crypto liquidations to the growing AI infrastructure trade. Meanwhile, KuCoin hit a record share of centralized exchange volume, surpassing $1.25 trillion in 2025, signaling that while individual tokens like DOT struggle, platform engagement remains structurally high.