• Polkadot price is currently hovering above the $23.66 support level after an 18% retracement.
  • Referendum 29, which proposes to increase validators to 399, is failing with a 0.38% turnout.
  • A breakdown of the $19.71 support barrier will invalidate the bullish thesis.

Polkadot price is currently experiencing a sell-off after a massive upswing. This pullback paves the way for the sidelined investors to have the opportunity to invest in DOT at a discounted price, allowing the next leg-up to have an extra oomph.

Proposal to increase validator count fails

Referendum 29, among other things, is a proposal to increase the validator count from 300 to 399. While controversial, the 0.38% turnout shows that this change will not occur.

Roughly 36 hours remain until the voting period expires. At the time of writing, nearly 2.7 million DOT have been staked to implement this change, while 1.5 million DOT have been stacked against it.

Referring to the proposal mentioned above, the parachain's official team adds:

increasing the validator count relative to the amount of validators participating in parachains will lead to increased variance of rewards. For that reason, the parachains team recommends keeping the amount of validators low to achieve an outcome of low reward variance, an earlier launch of parachains and consensus stability.

While the number of validators remains unchanged, technicals indicate that Polkadot price is eyeing a reversal.

Polkadot price plans comeback

Polkadot price rallied 46% from August 9 to August 17 to set up a range high at $27.45, but DOT has since retraced roughly 18% as it briefly shattered the $23.64 support level. However, Polkadot price has managed to quickly recover above the demand barrier mentioned above and shows confidence that it will continue to climb.

Regardless, investors need to be open to a pullback to $21.84.

Either way, market participants can expect a resurgence of buying pressure around any of the support levels mentioned above. In such a case, the upside for the recovery rally seems to be capped at around $31.38, roughly a 32% ascent from $23.64.

DOT/USDT 12-hour chart

DOT/USDT 12-hour chart

On the other hand, a breakdown of the $21.84 demand barrier will indicate a weakness among buyers and open the path for further descent. This move does not invalidate the bullish thesis, but a breakdown of the $19.71 support level will.

Under these circumstances, investors can expect Polkadot price to explore a retest of the $18.34 and $17.01 footholds.


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.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Can Shanghai hard fork propel Ethereum price to $1,500

Can Shanghai hard fork propel Ethereum price to $1,500

Ethereum price spiked up by 6% on December 8 after a brief consolidation. Ethereum (ETH) price shows a strong comeback as it follows in Bitcoin’s footsteps. This uptick coincides with ETH developers announcing the Shanghai hard fork release in March 2023.

More Ethereum news

US Senators introduce bill mandating crypto mining firms to report CO2 emissions

US Senators introduce bill mandating crypto mining firms to report CO2 emissions

Bitcoin has been the face of the crypto market and the Proof of Work (PoW) consensus method. But at the same time, it has also been the face of excessive energy consumption, sparking debates about curbing the impact of digital assets.

More Bitcoin news

Ethereum “Shanghai” hard fork set for March 2023, enabling users to withdraw their staked ether

Ethereum “Shanghai” hard fork set for March 2023, enabling users to withdraw their staked ether

Ethereum is seemingly in a development streak ever since the network first experienced its biggest upgrade this year. The Merge, initiated the transition of the network from PoW to PoS, is set to be pushed further with “Shanghai”.

More Cryptocurrencies news

Dogecoin vs. Shiba Inu: SHIB price to overthrow DOGE and rally 40%

Dogecoin vs. Shiba Inu: SHIB price to overthrow DOGE and rally 40%

Dogecoin price has been outperforming the Shiba Inu price, but circumstances are subject to change. If market conditions persist, SHIB could gain market control and rally while DOGE heads for lower targets. Dogecoin price pulled off an astonishing uptrend rally during the fall.                                    

More Dogecoin news

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

A massive bullish move is coming. In the last two articles, we have taken a look at why this is possible from a technical and on-chain perspective. In this weekly forecast, we will take a look at Bitcoin’s monthly performance for the last decade and determine if this bullish outlook is possible. 

Read full analysis