Polkadot Retests Symmetrical Triangle Pattern
Polkadot (DOT) rose nearly 1% on Tuesday after a two-day drop. It is retesting a breakout from a symmetrical triangle pattern on the daily chart. However, DOT’s price remains under pressure after a recent DAO referendum.
Polkadot DAO Limits Total Supply to 2.1 Billion DOT
On Sunday, Polkadot’s Decentralized Autonomous Organization (DAO) passed a referendum with 81% support. The vote capped the total DOT supply at 2.1 billion tokens. This is a change from the previous policy of unlimited supply.
The referendum also sets a step-down in token issuance every two years on Pi Day (March 14). The current annual issuance of 120 million DOT will decrease over time. By 2040, the total supply is expected to reach 1.91 billion DOT.
Technical Outlook Shows Risk of Price Drop Below $4
Despite the new tokenomics, DOT’s price fell for two days before a slight recovery. Open Interest in DOT derivatives dropped nearly 5% in 24 hours, signaling reduced trader interest.
If DOT falls below the 100-day Exponential Moving Average (EMA) at $4.01, it could drop further to $3.69. The Relative Strength Index (RSI) has fallen to 54, showing weaker bullish momentum. The Moving Average Convergence Divergence (MACD) is close to a bearish crossover, which may trigger selling.
For a stronger recovery, DOT needs to break above the R1 pivot level at $4.27, near the 200-day EMA. If it does, the next target could be the R2 pivot at $4.79.
