- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Cardano breaks above descending trendline, eyes April high as bullish momentum builds
Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut
Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.