Polkadot Traders Eye $1.121 Support Amid Governance Uncertainty

Polkadot (DOT) is currently trading at $1.172 after experiencing a daily decline of 7.13%. The asset's price has fallen below its key short- and medium-term moving averages, indicating bearish momentum.

The Polkadot community is voting on Referendum #1944 to introduce dotUSD, a native stablecoin backed by DOT and seeded with USDT and DOT from the treasury. This initiative aims to establish dotUSD as part of ongoing network economic reforms, modeled after Liquity v2.

Mixed momentum indicators show conflicting signals: MACD is bearish while ADX is neutral. RSI stands at 45.118, indicating mild selling conditions. In the short term, DOT is projected to trade within the $1.121 to $1.223 volatility band over the next two to three sessions.

There is a modeled 42% probability of an upward move and a 58% chance of further downside, making a lower trajectory more likely. The baseline scenario calls for a sideways movement within this range, with a bullish breakout possible on a confirmed push above $1.217, while a bearish scenario would see a slip below $1.121 support.