– Polkadot price trading at $3.82 is inching closer to a three-year low, owing to the fading bullish momentum.
– Web3 Foundation announced a $41 million program to augment the community-governed funding to help projects.
– The broader market conditions have been taxing for the DeFi space, with the majority of the Polkadot Parachains losing TVL.
Polkadot price decline, which started in February, has been going on for almost eight months now.Forming new lower lows, the
altcoin is bearing nothing but losses for its investors.However, the cryptocurrency has a shot at recovery if Web3 Foundation’s new program turns out to be a success.
Web3 Foundation initiates DOT program
Web3 Foundation announced on Tuesday that it would be kickstarting a new program to support teams and individuals that intend to develop on Polkadot.Crediting the Polkadot community for the success of the network’s growth, the Foundation announced that the program would be deploying about 20 million CHF and another 5 million DOT worth around $41 million collectively.
These funds would be deployed throughout the next year and will augment the community-governed funding mechanism from the Polkadot Treasury to back projects that can contribute to the network.
Polkadot’s parachains were one of the first and most successful ventures from the network in terms of community-driven development.
However, the bearish market conditions have not been kind to the parachains in the past month.
Projects, including the likes of Acala, Moonbeam, Astar and more, have seen a decline of 9% to 22% in the total value locked on the chains.
Polkadot parachains TVL
Nevertheless, Web3 Foundation’s initiative might act as a positive trigger for parachains as well as Polkadot price.
Polkadot price sees red
Polkadot price has been stuck in a downtrend for a while now, forming a fresh year-to-date low in the last 48 hours.The altcoin has lost over 10% of its trading value, changing hands at $3.81 after failing to break above the 50-day Exponential Moving Average (EMA) at the beginning of the month.
To make matters worse, the bullish momentum has turned bearish, with the Moving Average Convergence Divergence (MACD) indicator observing a bearish crossover this week.This development suggests that the downtrend could continue, which might result in DOT falling to a three-year low of $3.63, which was last visited by the altcoin in October 2020.
DOT/USD 1-day chart
But if the Polkadot price manages to bounce off the critical support level at $3.63, it could initiate a recovery augmented by external network developments such as the one mentioned above.Reclaiming the support of $3.96 would prove to be crucial to DOT in order to flip the 50-day EMA into a support floor and invalidate the bearish thesis to rise beyond $4.00.
Information on these pages contains forward-looking statements that involve risks and uncertainties.Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
You should do your own thorough research before making any investment decisions.FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.
It also does not guarantee that this information is of a timely nature.Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.
All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Follow us on Telegram
Stay updated of all the news
Recommended Content
Editors’ Picks
Solana inflows dominate altcoin space as funding rout plagues sector
Solana has emerged as a standout performer in the altcoin market with a surge in weekly inflows at $24 million, making it the “altcoin of choice”, according to a recent CoinShares report.
More Solana news
BTC to dip, taking altcoins with it
Bitcoin price faces rejection at $28,485 hurdle and looks ready to slide lower.
Ethereum price sits above a key support area of $1,551, a breakdown of which could see ETH revisit $1,309.Ripple price retests the $0.500 foothold with $0.469 and $0.420 barriers ready to support incoming selling pressure.
More Cryptocurrencies News
Altcoins’ bullish surge comes to an end, analyst explains market decline
The altcoin market, which was riding a wave of bullish momentum months after the FTX collapse, is now facing a downward shift.The rise in the sector has come to a halt in October, crypto analyst Cold Blooded Shiller noted on X.
More Cryptocurrencies News
Friend.tech wallet hit with phishing scam as trader loses 22 ETH portfolio
Sophisticated scam has hit a trader @yyctrader1, resulting in loss of his 22 ETH portfolio.
Stolen funds have been reportedly transferred from Friend.tech wallet to Ethereum via Orbiter.
More Cryptocurrencies News
Bitcoin: BTC bearish fractal forecasts correction to $25,000
Bitcoin (BTC) price hovers around $27,600 and shows no directional bias on the daily chart.Liquidity pockets are present in both directions, leaving traders guessing where BTC will go next.
Read full analysis.
