The post DOT Price Rallies Above Key Resistance Despite Recent Pullback – Polkadot Supply Cap Fuels Bullish Momentum appeared on BitcoinEthereumNews.com.

Jessie A Ellis
Sep 20, 2025 06:58

DOT price trades at $4.40 with strong bullish signals intact despite 4.18% daily decline. Supply cap decision and technical breakout suggest upside potential remains.

Quick Take • DOT currently trading at $4.40 (-4.18% in 24h) • Polkadot’s RSI at 58.12 indicates neutral momentum with bullish MACD crossover • Community approved supply cap at 2.1 billion tokens drives fundamental strength What’s Driving Polkadot Price Today? The most significant catalyst for DOT price action this week stems from the community’s landmark decision to cap Polkadot’s total supply at 2.1 billion tokens through Referendum 1710. This fundamental shift from an inflationary model to a fixed supply framework has created strong bullish sentiment, even as the DOT price experiences today’s 4.18% pullback. Recent governance activity continues to showcase Polkadot’s active ecosystem development. Referendum 1756, proposing a relay chain upgrade to runtime version 1.7.1, is passing with near-unanimous support, while Referendum 1729 for treasury diversification into USDT and USDC maintains 96.3% approval. These developments, while not immediately price-impacting, reinforce Polkadot’s commitment to technical advancement and treasury management. The current daily decline appears to be profit-taking rather than fundamental weakness, as the broader market sentiment remains supportive following the supply cap announcement. Trading volume of $48.2 million on Binance spot markets indicates healthy institutional interest despite the temporary price compression. DOT Technical Analysis: Bullish Signals Emerge Polkadot technical analysis reveals compelling bullish momentum despite today’s price action. The DOT RSI reading of 58.12 positions the token in neutral territory with room for upward movement, while the MACD histogram shows a positive 0.0259 reading, confirming bullish momentum continuation. The moving average structure strongly favors buyers, with DOT price trading above both the 7-day SMA at $4.34 and the 20-day SMA at $4.13.…

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Filed under: News - @ September 20, 2025 11:19 pm