In recent news, Polkadot (DOT) is declining after experiencing a significant 200% rally to nearly $8. Despite filing for a Polkadot ETF in the USA, the price fell almost 50% in one week, reverting all November-December gains, which puts pressure on investors hoping for further price increases in Q4 2024.

Current Status of DOT Price

Over the last few weeks, DOT’s price drop has been alarming, with losses impacting expectations of upward trends. While there are positive developments within the Polkadot ecosystem, such as the 21Shares ETF filing and the upcoming Polkadot 2.0, the bearish sentiment persists.

Key Price Movements:

• DOT is trading below $6, posing a risk of further declines.
• Without a reversal above $6, losses may continue.
• Local support levels are now at $3.5.

21Shares ETF Filing

Despite the current outlook, the ETF application by 21Shares is a crucial step in the right direction for enhancing investor confidence. This could potentially lead to increased demand should the SEC approve it.

Polkadot 2.0 Developments

Polkadot’s developers are actively working on improving scalability and transactional efficiency with Polkadot 2.0, including features like Asynchronous Backing and Elastic Scaling. Adopting these advancements will be significant for the ongoing competitiveness of the platform.

[Disclaimer: This content is provided for informational purposes and does not constitute investment advice.]