In the latest Polkadot news, DOT price is under pressure, reversing Q4 2024 gains despite a DOT ETF filing in the United States and Polkadot 2.0 plans
Three months after rallying by 200% and reaching nearly $8, Polkadot is sliding, dropping by nearly 50% in one week.
Over the last five weeks, the decline has seen DOT
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reverse all gains posted in November and December, heaping more pressure on DOT holders, who expected prices to trend even higher after the leg up in Q4 2024.
Interestingly, this bearish wave persists despite crucial developments in the Polkadot ecosystem. Recently, 21Shares filed for a spot Polkadot exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC).
Additionally, the team is building and keen on rolling out Polkadot 2.0 to make the network more efficient and drive developer activity.
DOT Price Drop Reverses Q4 2024 Gains: What About Polkadot News Like DOT ETF?
Even with the high optimism, it is clear that sellers are in control. From the daily chart, buyers have been unable to reverse losses initiated on December 9.
Since then, the coin has dropped below $6, losing 55% after the slump. Technically, as long as DOT trades below $6, the coin may post more losses.
(DOTUSDT)
In the short term, local support is at $3.5, marking Q4 2024 lows. If this level is broken and sellers press on, DOT may drop to multi-month lows in an unexpected bear trend continuation formation.
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21Shares Files for A Spot DOT ETF
If this outlook is to change and DOT cements its place above $6, sentiment must change.
The filing of a spot Polkadot ETF by 21Shares, a digital asset manager based in Switzerland, in the United States, is a step in the right direction.
The asset manager is proposing the creation of the 21Shares Polkadot Trust, whose shareholders will have direct exposure to DOT.
(Source)
If approved, the derivative will be traded at the CBOE BZX Exchange with Coinbase as the shareholders’ DOT custodian.
Although recent spot ETFs, such as the spot Ethereum ETF, have not been as successful as the spot Bitcoin ETF, which launched in January 2024 in the United States, confidence is high.
Should it be approved by the SEC, DOT’s demand will likely shoot higher, lifting sentiment.
Polkadot 2.0 Building: Asynchronous Backing and Elastic Scaling
In that event, even progress made by the team, including plans for Polkadot 2.0, will further drive DOT.
Although Polkadot is scalable as it is, developers want to improve efficiency, scalability, and usability.
Agile Coretime is already live and has introduced changes to how parachains buy computational resources. This feature allows developers to buy resources in bulk or depending on demand, reducing costs as a result.
Additionally, the team is setting up for Asynchronous Backing and Elastic Scaling. The goal is to enhance block production speeds for parachains while also adjusting resource use based on demand. Once implemented, Polkadot will easily scale and become more efficient.
However, how DOT prices evolve in the short term will largely depend on market sentiment. If Bitcoin faces more headwinds and drops below $90,000, DOT will likely post losses.
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The post Polkadot Reverses Q4 2024 Gains Despite ETF Filing: What’s Next? appeared first on 99Bitcoins.
