- Polkadot price set to tank over 10% as MixBytes confirms in blogpost end of staking service for DOT and Kusama.
- DOT faces backslash on the back of this news.
- Expect DOT to tank below $6 with $5.74 as the best support nearby.
Polkadot (DOT) price is receiving a big blow from MixBytes, the developer of the decentralized finance staking service Lido. In a blog post it said it would suspend its staking program in Polkadot (DOT) and Kusama (KSM) by August 1. In the statement, the developer said that data and growth did not meet the business case expectations to sustain investments longer.
Lido shifting from Polkadot to Ethereum leaves DOT bulls hanging out to dry
Polkadot price sees risk even increasing of a cash exodus as MixBytes went on by saying in its blog post that occasional inefficiencies and bottlenecks have been proven too big of a challenge. Rather the Ethereum network looks to become the one to replace both DOT and KSM. This means that quite a bit of supply of DOT will hit the market between now and August 1.
DOT will have bears gearing up to quickly run price action into the ground on this. Although there is still plenty of time between now and August 1, the headline will be priced in quite quickly. This means that DOT will say goodbye to $6 and start trading near $5.74, although there is a risk of dripping even lower toward $5.31.
DOT/USD 4H-chart
With additional supply coming in, this opens up room for DOT bulls to buy additionally into the price action. As always, the first move will be negative, as bulls can buy the additional volume at a small discount near $5.90 around the 200-day Simple Moving Average (SMA). Expect a quick turnaround as that additional volume in bulls’ wallets will see DOT spiraling higher toward $6.70.
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