Polkadot (DOT) Tests $3.60 Support as Technical Indicators Flash Mixed Signals
The post Polkadot (DOT) Tests $3.60 Support as Technical Indicators Flash Mixed Signals appeared on BitcoinEthereumNews.com.
Luisa Crawford Aug 04, 2025 06:09 DOT price hovers at $3.63 with bearish momentum indicators, but Gavin Wood’s deflationary proposal provides bullish catalyst for potential reversal. Quick Take • DOT currently trading at $3.63 (+2.11% in 24h) • Polkadot’s RSI at 40.87 suggests oversold conditions developing • Gavin Wood’s Proof-of-Personhood proposal sparked 32% price surge last week What’s Driving Polkadot Price Today? The DOT price has experienced notable volatility following Gavin Wood’s groundbreaking proposal at the Berlin 2025 Web3 Summit on July 30th. The Polkadot founder’s suggestion to replace the current Nominated Proof-of-Stake model with a Proof-of-Personhood system has captured significant market attention, primarily because it promises to reduce security costs by 80% and transition Polkadot toward a deflationary model. This technical innovation proposal triggered an impressive 32% price increase for DOT, demonstrating the market’s positive reception to fundamental improvements in the network’s economic model. The shift toward deflationary mechanics represents a significant departure from traditional inflationary blockchain models, potentially making DOT more attractive to long-term holders. Additionally, Polkadot’s July 2025 roadmap release on July 28th outlined ambitious plans including Polkadot 2.0 with elastic scaling set for August launch, the Polkadot Pay mobile application, and the Polkadot Hub platform scheduled for October. While these announcements had minimal immediate price impact, they reinforce the ecosystem’s commitment to scalability and user adoption improvements. DOT Technical Analysis: Bearish Momentum Meets Oversold Conditions The current Polkadot technical analysis reveals a complex picture with conflicting signals. DOT’s RSI reading of 40.87 indicates the asset is approaching oversold territory, which historically suggests potential buying opportunities for contrarian traders. However, the MACD histogram shows a bearish reading of -0.0826, indicating that downward momentum remains intact for DOT. This bearish momentum is further confirmed by Polkadot’s position relative to its…
