Polkadot’s price is pressing against a key resistance zone as the network’s DAO approved a landmark proposal to cap DOT supply at 2.1 billion.
Summary
- Polkadot DAO approved Referendum 1710, capping DOT supply at 2.1B.
- DOT trades at $4.37, up 8% in a week but near key resistance at $4.50.
- Derivatives volumes have cooled, signaling reduced speculative activity.
At the time of writing, Polkadot was down 0.7% over the previous day, trading at $4.37. Despite the dip, DOT has gained 8% over the past week and 11% in the last 30 days, though it remains 92% below its 2021 all-time high.
Polkadot’s (DOT) trading volume over the past 24 hours is $235.3 million, which represents a 51.5% decrease from the day before and indicates a slowdown in market activity. Coinglass data shows that open interest dropped 2.35% to $605 million, while derivatives volume dropped 43% to $446.5 million.
This indicates that although overall interest in DOT futures is still high, traders are lowering speculative positions in response to recent volatility.
A new chapter for DOT supply
In a major governance milestone, the Polkadot DAO approved Referendum 1710 on Sept. 14, with 81% voting in favor of introducing a hard supply cap of 2.1 billion DOT.
Until now, the network minted roughly 120 million new DOT each year, around 10% inflation, with no ceiling on total supply. Under the new plan, issuance will step down every two years on March 14, eventually limiting supply to under 2 billion by 2040.
The move gives a token that has always been inflationary by design predictability and scarcity. Although the referendum is not legally binding, it does represent a growing community consensus for stronger fiscal discipline.
Gavin Wood, who recently returned as chief executive officer of Parity Technologies, framed the cap as part of a broader effort to prepare Polkadot for its 2.0 upgrade later this month. The update intends to reduce developer expenses while pushing throughput to new heights with features like Agile Coretime and Elastic Scaling.
Polkadot price analysis
DOT is currently testing a resistance level at $4.50, which has been the cap on rallies on multiple occasions in recent weeks. Momentum indicators are mixed. With the relative strength index at 61, the market is leaning toward bullish territory but is neither overbought nor oversold.
The majority of moving averages, ranging from the short-term 10-day to the long-term 200-day, continue to support an upward trend, and the MACD has turned positive, suggesting underlying strength. At the same time, the Commodity Channel Index and momentum readings warn of possible pullbacks, which makes the $4.00 level crucial to watch.
The next target might be $4.80 or even $5.00 if DOT gains traction. If sellers take control, $3.80 offers a stronger cushion, while $4.00 offers the first layer of support on the downside.
