2024

Polkadot

Million

Foundation

The winds of change are swirling around<a href="https://www.coingecko.com/en/coins/polkadot" target="_blank" rel="noopener nofollow"> Polkadot (DOT)</a>. After a month-long slump that mirrored a broader cryptocurrency market downturn, DOT finds itself at a critical juncture. 
<img loading="lazy" decoding="async" class="wp-image-627989 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/07/DOT.png?resize=999%2C65" alt="" width="999" height="65" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/DOT.png?resize=999%2C65?w=999 999w, https://www.newsbtc.com/wp-content/uploads/2024/07/DOT.png?resize=999%2C65?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/DOT.png?resize=999%2C65?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/DOT.png?resize=999%2C65?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/DOT.png?resize=999%2C65?w=750 750w" sizes="(max-width: 999px) 100vw, 999px" data-recalc-dims="1"> 
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. 
<h2 data-sourcepos="5:1-5:59" id="strong-falling-wedge-hints-at-breakout-analysts-eye-9-target-strong">Falling Wedge Hints At Breakout, Analysts Eye $9 Target</h2> 
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. 
<blockquote class="twitter-tweet"> 
 <a href="https://twitter.com/hashtag/DOT?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow">#DOT</a> 
 Polkadot forming falling wedge on daily timeframe<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f481-200d-2642-fe0f.png" alt="💁‍♂️" class="wp-smiley" style="height: 1em; max-height: 1em;"> 
 Key resistance at $6.5 – need to break for bullish structure<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/261d.png" alt="☝" class="wp-smiley" style="height: 1em; max-height: 1em;"> 
 Consider setting profit targets at $7.75 and $9.00 levels<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f3af.png" alt="🎯" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/OwPVFaPZyD" rel="nofollow">pic.twitter.com/OwPVFaPZyD</a> 
 — Jonathan Carter (@JohncyCrypto) <a href="https://twitter.com/JohncyCrypto/status/1808541673229856959?ref_src=twsrc%5Etfw" rel="nofollow">July 3, 2024</a>
</blockquote> 
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. 
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-627988" src="https://www.newsbtc.com/wp-content/uploads/2024/07/A_37d67e.png?resize=1024%2C474" alt="" width="1024" height="474" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/A_37d67e.png?resize=1024%2C474?w=1608 1608w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_37d67e.png?resize=1024%2C474?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_37d67e.png?resize=1024%2C474?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_37d67e.png?resize=1024%2C474?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_37d67e.png?resize=1024%2C474?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_37d67e.png?resize=1024%2C474?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_37d67e.png?resize=1024%2C474?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
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. 
<h2 data-sourcepos="11:1-11:63" id="strong-polkadot-foundation-s-spending-spree-strong">Polkadot Foundation’s Spending Spree</h2> 
However, a recent spending spree by the Polkadot Foundation has injected a dose of skepticism into the bullish narrative. Earlier this year, the Foundation <a href="https://forum.polkadot.network/t/2024-h1-polkadot-treasury-report/8862" target="_blank" rel="noopener nofollow">burned through a staggering $87 million</a>, leaving its coffers with a significantly reduced balance. 
<img loading="lazy" decoding="async" class="wp-image-627990 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/07/A_ff2122.png?resize=736%2C326" alt="" width="736" height="326" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/A_ff2122.png?resize=736%2C326?w=736 736w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_ff2122.png?resize=736%2C326?w=460 460w" sizes="(max-width: 736px) 100vw, 736px" data-recalc-dims="1"> 
<img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/hYbBpbUU/" width="1835" height="883"> 
The breakdown reveals $36.7 million allocated for advertising and events, $15 million for trading platform incentives, and $23 million for development.&nbsp;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). 
<img loading="lazy" decoding="async" class="wp-image-627991 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/07/A_d70070.png?resize=883%2C597" alt="" width="883" height="597" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/A_d70070.png?resize=883%2C597?w=883 883w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_d70070.png?resize=883%2C597?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_d70070.png?resize=883%2C597?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_d70070.png?resize=883%2C597?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/A_d70070.png?resize=883%2C597?w=750 750w" sizes="(max-width: 883px) 100vw, 883px" data-recalc-dims="1"> 
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

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

Table of Contents

NewsBTC

Other articles published on Jul 5, 2024

Crypto Market Analyst Ranks The Top Layer 1 Networks In Shocking Revelation

Pre-market panic! Crypto stocks sink as Bitcoin collapses

Ethereum Faces Significant Decline

Notcoin Price Prediction: NOT Plummets 34%, But The Crypto Crash Can’t Stop This New P2E DOGE Der...

XRP Price Faces Significant Drop

CORE, SEI, and Notcoin’s NOT Prices Crash – Here’s Why

Join our free newsletter for daily crypto updates!