Polkadot’s DOT could start a strong correction as the macro support trends are enhancing despite the recent suffering of the coin that we saw in the previous altcoin news.
The native crypto asset of the Polkadot ecosystem shed a few percent over the past 24hours but it got down by 10% from its weekly highs. The correction came as Bitcoin, ETH, and other altcoins crashed lower. While Bitcoin remains stagnant from a technical perspective, DOT could start a strong correction if it drops under a crucial support level. The support level held a few times before over the past few weeks suggesting a loss of the level which could be a huge issue for the bulls.
Polkadot even faces a stronger correction as the cryptocurrency reaches a pivotal macro support level. one trader shared a chart noting that DOT is primed to move below the $4.00 support level which has held a daily level of the support at about five occasions over the previous month. If DOT loses this level, it will mark the bottom of a textbook descending triangle and it could even face a correction into the $3.00 range:
“Almost a week later but we got another touch of trend resistance followed by another tap of support. Doesn’t look good. HTF is so important to any trades I make right now. I cannot stress this enough. No interest in anything less than 4H/1D!”
The concern was echoed by a number of other analysts and noted that DOT lost the support of $4.00 which could result in a decline in the $3.00 range and even go lower if there’s enough sell-side pressure. DOT has huge potential but it could follow it to negate another decline. Fundamentals include Polkadot taking some of ETH’s dominance in the decentralized finance market. ETH users have been extremely high transaction fees in the past few weeks which could allow Polkadot developers to deploy cheaper and efficient applications imbuing DOT with value.
As recently reported, Polkadot Treasury will work as a decentralized organization that is led by the community-elected Council that funds other projects. The teams have now submitted proposals that will improve the Defi ecosystem. A few months after the launch of the mainnet, Polkadot established a new decentralized platform (DEFI) in order to fund projects. Called the PolkaDot treasury, it will be governed by council members elected by the community. The Treasury represents funds that are collected via transaction fees, staking inefficiencies, and slashing.
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