Polkadot Tests $1 Support Amid dotUSD Launch

Polkadot's native token $DOT fell toward the $1 level on Binance's daily chart, declining roughly 7.6% as the network launched its native dotUSD stablecoin. According to CryptoNews, the price traded near $1.03, putting daily support under pressure while a rounded top formed on the 4-hour chart.

Support Levels and Technicals

Daily Fibonacci support sits at $1.017, with a session low of $1.009 briefly taking the token beneath that line before recovering. If selling pressure continues, the next marked Fibonacci support rests at $0.949, aligning closely with the 4-hour horizontal floor at $0.936. On the upside, the daily 61.8% retracement stands at $1.086 as the first recovery hurdle above the current price.

Daily momentum indicators favor sellers, with Aroon Down reading 100% and Stochastic RSI lines in oversold territory below 20. The 4-hour Supertrend has turned red with its active line at $1.140, while the Average Directional Index stands at 31.23, supporting the strength of the downward move.

Stablecoin Mainnet Rollout

The decline coincides with Polkadot launching the native dotUSD stablecoin to mainnet under its OpenGov governance system, following the execution of Referendum 1944. The proposal allocates $2.5 million in USDT to mint dotUSD and $2.5 million in $DOT to seed liquidity pools. The initial phase permits one-for-one minting against USDT without price oracles or borrowing vaults, while a later phase will introduce $DOT collateral.

Key facts

• $DOT traded near $1.03 after dropping roughly 7.6% on Binance's daily chart.
• Daily Fibonacci support is positioned at $1.017, followed by $0.949.
• Polkadot launched the dotUSD stablecoin on mainnet following Referendum 1944.
• The initial dotUSD rollout relies on USDT backing, with $DOT collateral scheduled for a later phase.