Jessie A Ellis
July 20, 2025 2:23 AM
Dot is the midst of the innovative POP proposal from Gavin Wood to lower the validation costs by 80% and plans for Native Stablecoin, despite the removal of funds of grayscale that create mixed signals.
Polkadot -price rises 3.96% as proof of personality model and Dot Stablecoin plans float bullish momentum
Executive summary
Polkadot (DOT) heeft de afgelopen week opmerkelijke veerkracht en innovatie aangetoond en een winst van 3,96% behaald om $ 4,39 te bereiken per 20 juli 2025. De cryptocurrency is gestimuleerd door baanbrekende technische ontwikkelingen, waaronder oprichter Gavin Wood’s revolutionair bewijs van persoonlijkheid (POP) Proposal en de aankondiging van een native dot-backed stableCoin. Although Grayscale’s decision to remove DOT from his digital Large Cap fund, which created headwind, the positive momentum of technological progress has clearly outweighs institutional worries.
Recent market developments
Proof of personality: a game -changing consensus mechanism
The most important development came on July 16, when Gavin Wood revealed proof of personality model at the web3 -top. This innovative approach is intended to replace the current nominated proof of the importance of Polkadot with a more cost-effective alternative that could lower the annual validation costs from $ 500 million to around $ 100 million-one reduction of 80%.
The POP model introduces fixed validation payments and stricter rules for setting up the inflation-driven dip sale. This proposal is about one of the most important economic challenges of the network and can significantly improve the DOT tokenomics by reducing the sales pressure of validators who are currently selling tokens to cover operational costs.
DOT-BACKED STABLECOIN improves the Defi utility
On July 17, plans for a native Stablecoin collateral that was exclusively announced by DOT, which announced a strategic step to improve the liquidity and Defi tool within the Polkadot ecosystem. This development is especially important because the DOT positions and both a governance to smoking and a productive active that can generate yield via Stablecoin support. The Stablecoin initiative is expected to improve capital efficiency and attract more users to the platform, which may create a sustainable demand for point to tops.
Elastic scale upgrade increases performance
The Elastic Scale V1.6.1 -Upgrade went live on July 16, allowing parachailles to dynamically adjust the computer sources for faster transactions. This technical improvement is part of the wider Polkadot 2.0 initiative and shows the dedication of the network of continuous improvement and development experience optimization.
Institutional headwind of Grayscale
Not all the news was positive, because on July 14 Grayscale Investments announced the removal of DOT from his Digital Large Cap Fund, so that 5.8% of the fund was re -released to Hedera (Hbar). Although this is a setback in institutional acceptance, the positive response of the market to later technical developments suggests that innovation remains the primary motivation of the value proposition of DOT.
Technical analysis
Current market position
DOT clearly acts at $ 4.39 with a strong bullish momentum on multiple timetable. The token is broken over several important advanced averages, including the 7-day SMA ($ 4.21), 20-day SMA ($ 3.80) and 50-day SMA ($ 3.76), indicating a clear shift in market sentiment.
Momentum indicators signal overbought conditions
The RSI lecture of 70.86 suggests that Dot Overbought Territorium is approaching, which could indicate a potential withdrawal in the short term. However, the MACD remains positive at 0.1879, with the signal line at 0.1016 and a histogram of 0.0863, which confirms the bullish trend, remains intact.
The stochastic oscillator shows %K at 81.86 and %D at 78.39, which further supports the overbough assessment but does not yet reach extreme levels that would indicate an immediate reversal.
Bollinger bands -analysis
DOT acts near the upper Bollinger band for $ 4.54, with a %B -lecture of 0.8984, which indicates a strong up -like momentum. The middle band of $ 3.80 serves as dynamic support, while the lower tire at $ 3.07 represents a considerable level of support in the case of a wider market correction.
Main support and resistance levels
Immediate resistance is $ 4.62, which matches both R1 and R2 levels. An outbreak above this level can focus on the 52 -week highlight of $ 10.67, although such a movement would require sustainable purchasing pressure and continuous positive developments.
Support levels are well defined on $ 3.24 (S1) and $ 3.01 (S2), which offers a pillow for possible recovery. The pivot point at $ 4.34 serves as an important reference level for intraday trade decisions.
Trade strategy and signals
Short -term trading approach
Given the Overbought RSI conditions, traders must be careful when entering new long positions at the current level. A potential strategy would be to wait for a withdrawal to the range of $ 4.20- $ 4.30, which coincides with the 7-day SMA and recent support levels.
Investment thesis in the medium term
Fundamental developments, in particular the proof of personality proposal and Stablecoin plans, offer a strong basis for bullish positioning in the medium term. Investors with a horizon of 3-6 months can take into account the average of the dollar costs in positions on every weakness below $ 4.00.
Risk management
Stop-loss levels must be set under $ 3.80 (20-day SMA) for short-term trade and less than $ 3.24 (S1) for longer-term positions. The high ATR of $ 0.24 indicates a significant volatility that requires a suitable position measuring.
Price forecasts and prospects
In the short term
If DOT can break above the $ 4.62 resistance level with a strong volume, the next goal would be $ 5.50- $ 6.00, which represents a top of 25-37% of the current levels. This scenario would probably require a continuous positive news flow and broader crypto market strength.
Long -term potential
The implementation of the proof of the personality model and a successful launch of the Stip-Backed Stablecoin could drive DOT to his previous highlights. A conservative target for the next 12 months would be $ 8.00-$ 10.00, based on a successful implementation of the route map and favorable market conditions.
Bearish scenario
A absenteeism to keep above $ 4.00 can cause a deeper correction to the range of $ 3.20- $ 3.50. The strong fundamental developments, however, offer considerable downward protection compared to other cryptocurrencies that miss similar innovation catalysts.
Risk analysis
Technology -Implementation risk
The success of the proof of the personality model depends on the acceptance of the community and technical implementation. Any delays or complications in the implementation can have a negative influence on sentiment and price performance.
Competitive pressure
Although the innovations of Polkadot are impressive, the blockchain space remains very competitive. Other Layer 1 networks also promote their technology, and market share can shift if competitors deliver superior solutions.
Regulatory uncertainty
The Stablecoin initiative, although promising, is confronted with potential regulatory control as governments developing frameworks worldwide for digital assets. Any adverse legal developments can influence the timeline and the success of this initiative.
Market correlation
DOT remains correlated with broader cryptocurrency markets, and any significant decline in Bitcoin or Ethereum can overshadow positive fundamental developments in the short term.
Conclusion
Polkadot’s recent performance and development announcements position it as one of the most innovative projects in the cryptocurrency space. The proof of personality proposal relates to critical economic inefficiencies, while the planned dip-backed stablecoin could considerably improve the usefulness and acceptance of the ecosystem.
Despite some institutional headwind of the redistribution of Grayscale’s Fund, the technical momentum and fundamental developments create a compelling investment thesis. The current price of $ 4.39 is a reasonable access point for investors who believe in the long -term vision of Polkadot, although traders must take overbough conditions into account in the short term.
In the coming weeks will be crucial to determine whether DOT can break above the most important resistance levels and establish a new upward trend. With strong technical indicators, innovative developments and a clear route map for lowering network costs, while the functionality is being improved, Polkadot seems to be well positioned to surpass many of its competitors in the current market cycle.
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