Polkadot Enters Memecoin Frenzy With PINK Airdrop: Can DOT Price Reclaim $10?
How Will Memecoins Affect Polkadot? | Credit: Hameem Sarwar
Key Takeaways
- The first memecoin on Polkadot came out through an airdrop on March 22.
- PINK will appear on the decentralized exchanges Beamswap and StellaSwap.
- Will the DOT price sustain its increase above $9, or will it break down instead?
Today marks a pivotal moment for Polkadot as its first memecoin, PINK, launches its airdrop. The token is listed on Beamswap, StellaSwap, and is also integrated into Moonbeam. Anticipation is high for this community-centric distribution.
Despite its advanced capabilities, Polkadot has lagged significantly behind other blockchains regarding activity. With its belated entry into memecoins, enthusiasts wonder if this is the catalyst needed for broader adoption and sustained growth.
PINK Airdrops Today
PINK, the first memecoin on Polkadot will be airdropped today (March 22 2024). It will appear on Beamswap and StellaSwap in two separate DOT/PINK pools. PINK will also go live in Moonbeam , the first parachain in Polkadot.
The token distribution will be community-centric, with 12.5% of the supply being given to parachains inside Polkadot. In order to further increase community interaction, Polkadot is developing PINKDROP , an interactive browser game which will reward an additional 15% of the total PINK supply.
Polkadot is considered a Layer-0 blockchain . This is because it allows other blockchains to use its infrastructure for security. The benefit of using a so-called Layer-0 blockchain, such as Polkado,t is that chains built on top of it can easily interact with each other without needing bridges. Cosmos is a similar “Layer-0” blockchain.
While Polkadot has advanced scalability and interoperability features, it has lacked in engagement compared to other chains. For example. there are only 21,580 active addresses in Polkadot. Polkadot hopes to remedy this by entering the memecoin frenzy, something that can also have a positive effect in the DOT price.
DOT Price Prediction: Can DOT Maintain Breakout?
The weekly time frame shows DOT has increased alongside an ascending support trend line since October 2023. While following the trend line, the DOT price reached a high of $11.90 last week.
The price has fallen slightly since, but still trades above the $9 horizontal area and the ascending support trend line.
Despite the bullish price action, the Relative Strength Index (RSI) is showing bearish signs in the form of a bearish divergence in the weekly time frame (green). A similar divergence is visible in the momentum bars of the oving average convergence/divergence (MACD) indicator.
So, whether DOT breaks down from the trend line and the $9 area or bounces can determine the future trend’s direction. A successful bounce can trigger an 160% increase to $24. Conversely, a breakdown from the trend line can cause a 30% drop to the closest support at $6.30.
DOT Price Trades at a Crossroads
Despite Polkadot’s first memecoin coming out, mixed readings from the price action and indicators mean we don not yet know what the future price trend will be. The reaction to the confluence of support levels at $9 will be key in determining if the price will continue increasing or break down instead.
