Will Gavin Wood’s Tweet Drive a Rally in Polkadot (DOT)?
Aiswarya Gopan • 2 min read
Polkadot (DOT) is off to a choppy start early on Tuesday a day after its creator Gavin Wood announced a fund worth nearly $800 million towards fostering DeFi innovation on the blockchain network. At the time of writing, DOT/USD is trading around $41.02.
Polkadot About to Make a Splash in DeFi?
In a recent tweet shared by Wood on Monday, he states, “The @Polkadot treasury currently has 18,936,300 DOT (DOT, not USD – do the math) in it ready to spend on *your* ideas for building, improving, educating and indeed, anything else that the Polkadot governance believes valuable.”
With the upcoming parachain auctions on the Polkadot network already driving up quite the rally in DOT lately, news of a possible DeFi fund is likely to drive up interest in the blockchain network among both investors as well as developers in the coming sessions. Over the past week, DOT/USD has strengthened by over 25%, outperforming market leader Bitcoin and being one of the biggest gainers across the wider crypto sector.
October started on a strong note as far as cryptos were concerned, especially the leading players in the DeFi space. According to DefiLlama, the TVL in DeFi crossed $200 billion at the beginning of the month and has grown by over $22 billion over the past two weeks alone, driving up greater investor interest in the DOT token. Institutional investment into Polkadot grew by $3.6 million over the past week, according to latest data published by CoinShares, raking in the second-largest share of weekly inflows after market leader Bitcoin.
DOT/USD Technical Analysis
According to popular crypto strategist and trader Capo, Polkadot could become the top performing altcoin in this current cycle. He forecasts a stronger rally in DOT than in Solana, Binance Coin, Cardano as well in leading cryptos Bitcoin and Ethereum.
On the H4 price chart of DOT/USD, most of the larger moving averages suggest a strong bullish bias. However, the smaller timeframe MAs as well as leading technical indicators MACD and momentum are pointing towards some selling interest as well.
Polkadot’s price is sitting just above the pivot point at $39.61 and has some way to go until the immediate resistance at $47.17. However, with the price sitting so close to the PP, selling pressure can this level being tested as well.