Does Ukraine receiving donations provide an incentive to support DOT recovery?

The recent Russian invasion of Ukraine has rocked the crypto market. While most coins, including Polkadot (DOT), have yet to fully recover, it looks like they will soon.

In support of defense efforts against Russia, Ukraine has started encouraging fiat and crypto donations. To facilitate this, they first set up accepting crypto donations for Bitcoin, Ethereum, and USDT.

The same happened with Polkadot. Also yesterday, Polkadot founder Gavin Woods donated $5.7 million DOT to Ukraine, as Bitcoin Magazine reported.

POINT price promotion

Such developments could play an important role in the recovery of the crypto market, especially for DOT. It hit an all-time high (ATH) of $53.8 last November, then fell to hit a local bottom at $15.97.

Fortunately, bullish signals from the broader market have helped the DOT price rise 18.47% from the local bottom and it is currently trading at $18.22. Recently, DOT has been flashing bullish signals.

For example, the MACD (Moving Average Divergence and Convergence) formed a bullish crossover 48 hours ago, while the RSI (relative strength) entered the bullish neutral zone after two weeks.

Polkadot Price Promotion | Source: TradingView

However, DOT’s on-chain performance is dismal. Polkadot’s market value has not been its best since mid-January, reaching just 0.7 and is currently below 1.

Adding to this excitement is the social volume of the DOT. Not only is social volume low, but social dominance, which was 1.4% two months ago, is now just 0.3%.

The only positive thing for DOT is that active development hasn’t slowed down too much.

Development activities Polkadot | Source: Santiment

In light of this development, many new investors wanted to get into Polkadot. However, these folks need to know that the risk-adjusted return for DOT is -1.01. This is not an appropriate level.

Expected Return Polkadot | Source: Messari

Therefore, it is wiser to wait for specific recovery signals and do your own research before investing.

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