Polkadot (DOT) is grappling with a 20% price drop in the midst of market struggles and internal financial controversies. With technical analysts eyeing a potential breakout, concerns loom over the recent $87 million expenditure by the Polkadot Foundation and its impact on the community.
Polkadot Faces Market Turmoil: 20% Price Drop Following $87 Million Expenditure
Polkadot (DOT), a prominent cryptocurrency, has recently experienced a significant downturn, with its price dropping by 20%. This decline occurs amid broader market struggles and internal financial controversies. Technical analysts had been optimistic about DOT’s price potential, noting a “falling wedge” pattern on the daily chart, suggesting a potential breakout. Renowned analyst Jonathan Carter identified $6.50 as a critical resistance level, predicting that breaking this point could drive DOT’s price towards $7.75 and potentially $9.00.
Despite this technical optimism, the Polkadot Foundation’s recent financial decisions have caused community unease. Earlier this year, the Foundation spent $87 million, allocating substantial sums to advertising, events, trading platform incentives, and development. Many community members are skeptical, questioning the returns on these investments, especially since Polkadot remains behind rivals like Ethereum and Solana in key performance metrics.
Currently, Polkadot trades at $5.39. The coming days are crucial, as the potential for a significant price increase hinges on overcoming the $6.50 resistance level amidst growing community concerns.
