The Polkadot (DOT) prices are barely holding above the $1.7 support level despite the introduction of a native smart contracts hub. Traders are being very cautious with the existing uncertain geopolitical conditions. However, there is a bullish divergence, and DOT might once again rally toward $2.
Polkadot introduced its native smart contract platform, which has ‘Ethereum compatibility with the performance and cross-chain capabilities of the Polkadot ecosystem.’
And it gives the luxury for developers to deploy smart contracts directly on Polkadot Hub while using familiar Ethereum tooling, workflows, and programming languages.
Polkadot’s dual VM approach
To be specific, the smart contract platform is built with a dual-virtual machine approach. The REVM – Rust Ethereum Virtual Machine – runs existing Ethereum smart contracts written in Solidity or Vyper, while the native Polkadot VM is used for computationally heavy or complex workloads.
This dual-VM architecture is advantageous for developers, as they can migrate existing Ethereum contracts instantly or optimize for speed and efficiency with native execution.
From the user’s perspective, the upgrade makes the interfaces feel closer to Web2 and smoother, with fewer delays, fewer steps, and smoother flows.
Despite all these improvements to better the experience of the Polkadot users, the DOT price, however, still continues to struggle. The DOT prices haven’t been able to rise above the 50-day moving average, as traders continue to be cautious.
DOT’s next target is $2
As shown in the chart above, DOT lost its support level at $4.5 in March. However, it occasionally tested and broke above this level. But come October 10, 2025, when Trump announced tariffs, DOT lost its footing and experienced a huge crash.
Until October, the token occasionally tested and broke above the 50-day MA, but after the tariff announcement, it did not stand a chance. Now that the token is at $1.8, in uncharted territory, there are no support levels to hold the price. And the prevailing geopolitical situation is getting worse.
However, on the technical front, there is some positivity. The Relative Strength Index indicator is making higher highs while the price of DOT is making lower highs.
This is a bearish divergence. It means that DOT is gaining momentum, but it has not been reflected on the charts. In the coming days, there is a possibility that DOT could test the $2 psychological resistance level.
