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Polkadot

encountered substantial selling pressure, dropping as much as 5% before rebounding and potentially forming a double bottom pattern that points to continued upward movement, according to CoinDesk Research’s technical analysis model.

After initially attempting to establish an uptrend with a peak at $3.787, DOT encountered strong resistance and formed a bearish reversal pattern, according to the model.

In recent trading, DOT was 2.6% lower over 24 hours, trading around $3.63 having found support at $3.59. The broader market gauge, the CoinDesk 20, was down 0.5% at publication time.

The price action shows a potential double bottom pattern forming with improving momentum, suggesting further upside if it maintains support above the $3.62 price level, the model showed.

Technical Analysis:

• DOT experienced a volatile 24-hour period with a substantial range of 0.193 (5.1%), initially attempting to establish an uptrend with a peak at $3.787 before encountering strong resistance.
• The price action formed a bearish reversal pattern as DOT failed to hold above the $3.75 level, followed by accelerated selling on high volume during the 10:00 and 13:00 hours when volume spiked to nearly 4 million units — well above the 24-hour average.
• Support emerged at $3.594, though the current price structure suggests further downside risk as DOT closed near session lows with weakening momentum indicators.
• In the last hour, DOT experienced significant volatility with a sharp decline from $3.643 to a low of $3.594, followed by a recovery attempt.
• The price found strong support at the $3.594 level, triggering a V-shaped recovery that pushed DOT up by 1.3% to $3.642.
• The recent price action forms a potential double bottom pattern with improving momentum, suggesting the possibility of continued upward movement if DOT can maintain support above the $3.62 level.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

A new proposal within the Polkadot ecosystem is pushing for the creation of a Strategic Bitcoin Reserve.

According to the proposal, the plan involves converting 500,000 DOT, valued at around $2 million, into Threshold Bitcoin (tBTC), a wrapped version of Bitcoin secured through threshold cryptography, which ensures decentralization and non-custodial management.

Polkadot’s Bitcoin proposal

Before conversion to Bitcoin begins, the 500,000 DOT will first be staked in aDOT, a yield-generating collateral token.

This will allow the treasury to earn returns on its DOT holdings while increasing liquidity for DeFi borrowing.

Additionally, 1,000 DOT will be set aside to cover transaction fees involved in executing this strategy.

From there, the Polkadot treasury would execute the BTC conversion gradually over a year, using Hydration’s rolling dollar-cost averaging (DCA) feature. This method enables daily, incremental purchases to maintain a steady Bitcoin inflow.

Once enough tBTC is accumulated, portions of it (0.005 tBTC per transaction) would be added as liquidity to the Hydration Omnipool. The proposal stated:

“This is intended as a first step towards diversification into Bitcoin where future proposals could include other bridged BTC assets. The tBTC stays under the control of the Treasury and is intended to be maintained as a reserve, not a pool for payments.”

Supporters of the plan say the move would reduce exposure to market swings and create new opportunities for DeFi on Polkadot. The reserve is also designed to preserve the treasury’s value and ensure sufficient funds for future budgets.

Meanwhile, Polkadot’s move mirrors a broader industry shift of organizations and governments viewing Bitcoin as a strategic reserve asset to hedge against economic instability and currency devaluation.

Data compiled by Hodl15Capital shows that the top 100 corporate holders of the top crypto hold more than 818,000 Bitcoin in their coffers.

DOT’s price struggles

Polkadot’s interest in building a Bitcoin reserve comes as its DOT token faces market challenges.

According to CryptoSlate’s data, DOT’s price has dropped 7% in the last 24 hours to $3.80, its lowest level since October 2023.

In Bitcoin terms, the token has fallen to an all-time low of 0.00003658 BTC, losing over 62% of its value in the past year.

Mentioned in this article

Below is more information about the token:

Solana (SOL) is a blockchain platform aimed at improving user scalability. Solana is a blockchain platform aimed at improving user scalability through faster transaction payment times and flexible infrastructure. Sol Cryptocurrency plays a key role in maintaining and operating the Solana ecosystem and is used to execute smart contracts, send transactions, and incentivize actors to support the network.

XRP (XRP) is a digital asset built for payments. XRP ledger, open source, decentralized blockchain technology that is not permitted. Created exclusively for payments in 2012, XRP can resolve ledger transactions in 3-5 seconds. Ripple is a company that exists independent of XRP. Ripple is one of many players who utilized XRP in its products and built on the XRP ledger.

Cardano (ADA) is a research-driven cryptocurrency. Cardano is the first Shoof-of Stake blockchain platform based on peer-reviewed research. It is driven by Ouroboros, a protocol that its supporters have improved security, scalability and energy efficiency over its other work predecessors like Bitcoin. ADA is Cardano’s native token and you can bet on your reward.

Dogecoin (Doge) is a decentralized, peer-to-peer cryptocurrency that uses “Doge” memes as mascots. Dogecoin (Doge) is a peer-to-peer cryptocurrency widely used to lean content creators across a variety of social media platforms. Dogecoin features a portrait of Shiba Inu Dog, popularized in the “Doge” meme, and was first introduced in 2013 as a marketing experiment. Lots of amazing. Doge is pleased.

Litecoin (LTC) is a BTC fork that allows for fast transaction checking. Litecoin (LTC) was released in 2011 as a Bitcoin fork. The main difference is the 2.5 minute block processing time reduction in Bitcoin, rather than 10 minutes, allowing you to quickly check transaction confirmations. Litecoin also features improved storage efficiency and a slightly different proof of work mining mechanism than Bitcoin.

ChainLink is a distributed Oracle that provides external data to smart contracts. Using reputation and verification systems, the ChainLink network connects smart contracts to real-world data, events, and payments to reward honest actions between tamper-proof oracles. The cryptocurrency that runs a network is a link. This is an ERC-20 token that incentivizes Oracle (third-party blockchain data source) to maintain Service Level Agreement (SLA) standards.

Polkadot (DOT) is a blockchain network designed to facilitate quick transaction verification. Polkadot is a blockchain that seeks to connect the blockchain ecosystem, and introduces many new technological features towards this goal. The Polkadot network consists of two types of blockchains. In a main chain called a relay chain, all transactions are permanently agreed and user-generated chains (called parachines).

Before you begin, what you need to know:

To trade using margins, you must hold at least one collateral currency.

The availability of margin trading services is subject to certain restrictions and eligibility criteria.

Margin trading involves an additional fee to open, close and hold positions. Find out more about the various pricing and rates.

Does Kraken offer more pairs in margins?

yes! However, our policy is to never reveal any details before launching. All listed margin pairs of Kraken are available on our website. Client engagement specialists are unable to answer questions about which pairs they list in the future.

I’ll trade with caution

There is no guarantee that the restriction order will be implemented. There is no guarantee of margin pool availability at all times. There is also no guarantee for market orders executed at a specific price. The availability and liquidity of a particular digital asset affects these types of orders.

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