Polkadot (DOT) Nears Five-Year Low Amid Broad Market Downturn in December 2025

As of December 2, 2025, the Polkadot (DOT) token faced intense selling pressure, hovering precariously close to the $2.04–$2.05 range. This price level had not been seen since August 2020, underscoring a severe depreciation for the asset amidst a prevailing bearish technical trend. Year-to-date, DOT has plummeted by 77%, positioning it among the worst performers among large-cap crypto assets throughout 2025.

Technical indicators on December 2, 2025, clearly signaled sustained dominance by sellers. The token was trading well beneath critical moving averages: the 20-day Exponential Moving Average (EMA) at $2.46, the 50-day Simple Moving Average (SMA) at $2.82, and the 200-day MA resting at $3.56. Furthermore, the Relative Strength Index (RSI) on the hourly chart registered near 28.8, technically indicating an oversold condition, though this alone does not guarantee an imminent rebound. A crucial hurdle for any potential reversal remains the $2.50 resistance level, which is further reinforced by nearby moving averages clustered around $2.45.

The overall cryptocurrency market sentiment at the start of December 2025 was decidedly 'risk-off.' This pervasive mood was mirrored in Bitcoin's performance, which dipped below the $87,500 mark on December 1, largely due to macroeconomic uncertainty and dwindling liquidity. This widespread negative sentiment, exacerbated by rising yields on Japanese bonds, triggered a cascade of forced liquidations. Specifically, Bitcoin (BTC) shed up to 6% during the early Asian trading session on December 1, falling below $86,000, while Ethereum (ETH) saw declines to approximately $2,800.

Despite the current technical slump, the Polkadot ecosystem has continued to register significant fundamental progress. In September 2025, the decentralized stablecoin HOLLAR was launched, collateralized by DOT tokens, as part of the Hydration protocol’s vision to integrate trading, lending, and stable value storage. Additionally, Polkadot Capital Group was established in August 2025, with the explicit goal of onboarding traditional finance institutions and investment firms into the ecosystem.

Analysts suggest that a decisive break above the technical resistance point of $2.50 could ignite a short-term rally, potentially pushing the price toward $2.70. However, the dominant technical picture, where 78% of indicators signal bearish sentiment, implies that the downward trajectory is likely to persist without such a breakthrough. In a contrasting move, the competitor NEAR Protocol demonstrated resilience, posting an 8.2% gain as of December 2, 2025, standing apart from the 'risk-off' environment impacting Polkadot.

At the time of this analysis, Polkadot’s market capitalization stood at $3.31 billion, securing the 18th spot in terms of prominence on Coinbase. Historically, DOT reached its zenith of $55.13 on November 4, 2021, meaning its current valuation is a staggering 96% below that all-time high. DOT’s weakness aligns with a broader cooling of risk appetite across the crypto space, evidenced by Bitcoin’s 17.5% drop and Ethereum’s 22% decline throughout November.