Polkadot Under Fire: 20% Price Drop Follows $87 Million Spending Outrage

Share This Post

The winds of change are swirling around Polkadot (DOT). After a month-long slump that mirrored a broader cryptocurrency market downturn, DOT finds itself at a critical juncture.

Technical indicators hint at a bullish reversal, with some analysts predicting a significant price surge for the interoperable blockchain darling. However, a recent spending spree by the Polkadot Foundation has cast a shadow of doubt, leaving the community divided.

Falling Wedge Hints At Breakout, Analysts Eye $9 Target

As technical analysis presents a potentially hopeful picture, DOT holders’ hope wavers. On the daily chart, a “falling wedge” pattern—historically a bullish indication—has been observed. This pattern suggests a price squeeze between converging trendlines, often culminating in a sharp breakout.

Renowned analyst Jonathan Carter pinpoints $6.50 as the key resistance level. A decisive break above this point could trigger a surge in buying pressure, propelling DOT towards his projected profit targets of $7.75 and even $9.00.

The falling wedge pattern and increasing trading volume suggest a potential breakout is imminent. A successful breach of the $6.50 resistance could signal a significant shift in market sentiment, paving the way for a substantial price increase.

Buoying this optimism is the Relative Strength Index (RSI), currently hovering around 48.65. This neutral level indicates that DOT is neither overbought nor oversold, leaving room for further upward momentum.

Polkadot Foundation’s Spending Spree

However, a recent spending spree by the Polkadot Foundation has injected a dose of skepticism into the bullish narrative. Earlier this year, the Foundation burned through a staggering $87 million, leaving its coffers with a significantly reduced balance.


The breakdown reveals $36.7 million allocated for advertising and events, $15 million for trading platform incentives, and $23 million for development. While the Foundation maintains these investments are crucial for boosting network visibility and adoption, community members are not convinced.

Many point out that despite the hefty spending, Polkadot continues to lag behind competitors like Ethereum and Solana in key metrics like network activity, developer engagement, and total value locked (TVL).

The spending seems excessive, especially considering the lack of tangible results, some community members on the Polkadot forum said. The blockchain needs to see a better return on investment before the Foundation throws more money at marketing campaigns, they said.

Will Spending Concerns Spook Investors?

The coming days will be crucial for DOT. If the technical indicators hold true and the price breaks above $6.50, a significant rally could be in the cards.

However, the community’s concerns about the Foundation’s spending habits cannot be ignored. If these concerns translate into a broader sell-off, the potential breakout might fizzle.

Featured image from Shutterstock, chart from TradingView

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Cardano Is ‘About To Break Free’ – Breakout Above Crucial Supply To Trigger A Big Move–Analyst

Altcoins and Cardano have been caught in extreme market swings, with high volatility and panic-driven sell-offs dominating price action Since the start of March, ADA has lost over 44% of its value,

Here’s Why Dogecoin And XRP Prices Are Jumping Again

The Dogecoin and XRP prices are jumping again, having witnessed massive declines earlier this week alongside the broader crypto market This price surge occurred due to several factors, including the

Crypto CEO Falls: AML Bitcoin’s Founder Faces 30 Years for Fraud and Laundering

A cryptocurrency CEO has been convicted of wire fraud and money laundering after deceiving investors, raising millions through false claims, and laundering funds for personal luxury purchases AML

Bitcoin Price Above $100,000 Again? Chart Patterns Show What’s Coming Next

Crypto analyst Madden has raised the possibility of the Bitcoin price rallying above $100,000 again, providing a bullish outlook for the flagship crypto His analysis showed what is coming next for

Layer-3s are a necessary innovation in crypto

The following is a guest post from Rob Viglione, CEO at Horizen Labs If we had stopped at dial-up internet, we’d never have gotten Netflix, real-time gaming, or cloud computing The evolution of

Pi Coin Price Prediction: Is $3 Still Possible After 20% Dip?

The post Pi Coin Price Prediction: Is $3 Still Possible After 20% Dip appeared first on Coinpedia Fintech News The price of Pi Network’s token, Pi has recently experienced major selling pressure,