Polkadot's Stablecoin Approval Sparks 9.44% Price Decline
Polkadot's native stablecoin, dotUSD, has been approved by the community with an overwhelming 97.5% governance support. This milestone marks a significant step towards increasing utility, settlement, and DeFi activity within the Polkadot network. However, despite this development, the DOT price has fallen around 9.44%, trading at $1.046.
The decline is attributed to continued long-term selling pressure, with DOT trading below its 200-day moving average. However, short- and medium-term momentum remains bullish, with a key technical range of $0.861 to $1.404.
Analysts note that Polkadot has been under sustained selling pressure despite ecosystem developments such as the introduction of a native stablecoin. The current data suggests consolidation is expected in the near term, and a potential upside scenario hinges on a decisive breakout above $1.05.