The value of Polkadot [DOT] dropped after Bitcoin [BTC] broke below the $23.5K level. At press time, DOT was trading at $6.225, over 4% down in the past 24 hours. Similarly, BTC was closer to retesting or breaking below the $23K level. 

However, DOT’s drop hit a critical support zone, which could act as an inflection point if demand for the asset increases at the level. 

Polkadot’s January rally was slowed by two phases of price consolidation. The second price consolidation phase was the most challenging as it broke below the uptrend line at press time.