Polkadot (DOT) is brewing a significant breakthrough! The golden cross pattern combined with the inflation reduction vote, the technical double bottom structure targets $5.37 | DOT price prediction

Polkadot (DOT) is currently priced at $4, rebounding 35% from the year's low, and recently oscillating in a narrow range to build momentum. The community is currently voting on three major tokenomics proposals (hard cap reduction / soft cap gradual decrease / growth proposal), while the daily chart is about to form a golden cross pattern bullish signal and a symmetrical triangle breakout structure. If the hard cap proposal passes (supply limit of 2.1 billion tokens + inflation reduction of 53.6%), combined with the expectations for JAM upgrades, DOT may challenge the $5.37 neckline.

▌ Tokenomics Reform Voting: Three Major Proposals Battle Inflation and Supply Volume

The Polkadot community is currently voting on a critical tokenomics model, with the core differences among the three major proposals being:

1. Hard cap reduction proposal: Lock the total supply at 2.1 billion DOT, with the inflation rate dropping sharply by 53.6%. A tiered supply plan will start in March next year—current 14% staking yield will gradually decrease, reducing sell pressure but potentially impacting network security.
2. Soft cap gradual decline proposal: Set a supply limit of 3.14 billion DOT, adopting a progressive adjustment strategy, regarded as a conservative transition plan;
3. Growth Proposal: 2.1 billion supply hard cap, with a 33% inflation reduction every two years while the staking APR is halved. The current hard cap proposal is leading, and the final outcome will reshape the underlying logic of the Polkadot economic model.

▌ JAM Upgrade Countdown: Gavin Wood's Return Ignites Ecological Expectations

The JAM (Join-Accumulate Machine) upgrade proposed by Polkadot founder Gavin Wood is about to be implemented. This plan will promote Polkadot's evolution from a parallel chain architecture to a "decentralized supercomputer" that supports multi-industry applications, especially in DeFi. With Wood resuming his role as CEO, the upgrade process is expected to accelerate, bringing systematic value reassessment opportunities for the ecosystem.

▌ Technical triple bullish signal resonance: golden cross pattern + double bottom + triangle breakout

(Source: TradingView)

The daily chart shows multiple bullish structures:

1. Golden cross pattern: The 50-day and 200-day weighted moving averages are about to cross, forming a classic trend reversal signal;
2. Double Bottom Structure: A double bottom was formed in April and June at $3.256, with a neckline at $5.375 (theoretical rise exceeding 65% after breakout);
3. Symmetrical Triangle: The oscillating convergence is nearing its end, and the direction of the breakout will determine the medium-term trend. Key resistance level at $5.375 (May high), support level at $3.25 double bottom defense line.

▌ Staking Yield Reform: The Double-Edged Sword Effect of Inflation Reduction

If the hard cap proposal is passed, the current 14% staking APR will gradually decrease. Although this may reduce the attractiveness of staking in the short term, it will enhance the stability of coin prices in the long term by reducing token sell pressure. Historical data shows that in high-inflation scenarios, stakers often sell their rewards, creating a vicious cycle. The new economic model aims to break this paradox.

[Conclusion]

When the golden cross pattern on the technical side meets the tokenomics tightening on the fundamental side, and as the founder's return ignites upgrade expectations, the Polkadot coin is ushering in a golden window for value discovery. The narrow fluctuations around the 4-dollar mark may be the calm before the storm, and the results of community voting along with the JAM upgrade progress will jointly determine whether this will become an epic turning point for DOT to bid farewell to its historical lows.