- DOT/USD looks to extend the advance towards the $25 mark.
- 4H chart confirms symmetrical triangle breakout.
- The coin trades above all major averages.
Having faced rejection just shy of the $19 mark, Polkadot (DOT/USD) is consolidating the two-day rally this Sunday.
Despite the minor pullback, the altcoin holds above the $18 level and ditches the corrective downtrend seen across the crypto board last week.
The strength in the coin can be partly attributed to the sharp correction in Bitcoin, which has created an opportunity for the crypto traders to diversify into the DeFi tokens. While many analysts opine that Polkadot is also likely to gain a competitive advantage against Ethereum, as the price is seen rising further in the coming weeks.
Luis Cuende, the co-founder of the decentralized app company Aragon, noted:
While competitors to Ethereum are making strides and benefitting from the ongoing market rally, I think it’s very unlikely that these competitors will overcome the network effects that Ethereum has built. However, until Ethereum 2.0 is fully functional, Polkadot, cosmos and near are well-positioned to capture a meaningful market share.
DOT/USD: Bulls gearing up for further upside
DOT/USD: Four-hour chart
Polkadot, which has climbed to the no.4 position among the top 50 widely traded digital assets, is seen extending the upside after the price confirmed a symmetrical triangle breakout on the four-hour chart early Saturday.
The price continues to trade above all the major simple moving averages (SMA) on the four-hour sticks while the Relative Strength Index (RSI) stays well within the bullish region, both of which indicating more gains ahead.
A test of the measured target above $25 remains on the cards should the bulls find acceptance above the January 21 high of $19.40.
The psychological $20 level could come into play if the bulls extend their control.
Alternatively, the pattern resistance now turned support at $17.59 could limit the retracement.
A break below the last, fierce support around the $17 threshold could be threatened. That level is the confluence of the 21 and 50-SMAs.
Meanwhile, the bullish formation will get invalidated on a sustained move below the falling trendline (pattern) support at $15.96.
Polkadot (DOT) Shoots to $45 After Governing Council Passes Motion for Open Parachain Auctions
Polkadot (DOT) continues its rally further gaining Another 6% in the last 24 hours and moving closer to $45. As of press time, DOT is trading at 4.83% up at a price of $43.57 and a market cap of $43.02 billion. The DOT price has gained more than 30% in the last three days after Polkadot announced that it is ready for the parachain launch.
On-chain data provide Santiment reports that following the recent price rally, the euphoria around DOT has skyrocketed significantly as Polkadot (DOT) sets its eye for a new all-time high above $49.25. With this recent price rally, DOT has broken away from the broader altcoin space that has been consolidating for a while now.
Passing the Motion for Open Parachain Auctions
Polkadot said that its parachain auctions will start next month onwards. In a further update, Polkadot said that its governing council has passed the motion for open parachain auctions. however, it’s still waiting to be passed via a public referendum. The team also notes:
Referendum 39 is currently up for a community vote, if passed it will schedule the first auction to take place on November 11, 2021 [a little over 26 days]. Reminder for those wishing to take part in auctions, the unbonding period on Polkadot is 28 days.
The official page states that parachains will connect with the Polkadot blockchain by leasing a slot with the Relay Chain for 96 weeks at a time. All the parachain slots shall be assigned through an on-chain auction. The winners of these slots shall be locked un in a bond in DOT for the leasing period.
This development is likely to further incentivize more players to land on the Polkadot blockchain while gaining broader community support. The Polkadot parachains have been long sought by the market and will exponentially increase the scalability of the platform giving rival Ethereum a tough fight.
Crypto Traders Most Bullish on Polkadot, Solana, Polygon and 10 Additional Altcoins: Digital Asset Survey
A new survey unveils that crypto traders are most bullish on 13 altcoins including Polkadot, Solana and Polygon.
The Real Vision Exchange Crypto Survey is designed to track sentiment among investors by allowing participants to scan 30 tokens and choose if they want to have an overweight or underweight allocation for each one. The survey was conducted by Real Vision Bot, which was created by two independent developers and boosted by macro guru Raoul Pal.
Results from voting that happened on the first two days of this week indicate traders prefer an overweight portfolio consisting of smart contract platforms Polkadot (DOT) and Solana (SOL), as well as Ethereum-scaling solution Polygon (MATIC).
The scalable and interoperable ecosystem Cosmos (ATOM) is fourth on the list, and smart contract platforms Terra (LUNA) and Cardano (ADA) appear tied for fifth. Traders also have overweight allocations for decentralized oracle network Chainlink (LINK), Ethereum competitor Avalanche (AVAX), Ethereum-based token Enjin Coin (ENJ) and decentralized exchange Uniswap (UNI) for the sixth, seventh and eighth places, respectively.
Tied in ninth place are cross-border payment solutions Stellar (XLM) and XRP, as well as decentralized storage network (FIL).
Real Vision Bot clarifies that the participants are not necessarily holding the cryptocurrencies that they voted for.
“They can of course vote according to their own positions, but also just based on their sentiment or forward looking. There are many reasons why the own book might not be 1:1 the preferred allocation.”
Bitcoin (BTC) is conspicuously absent from the list. Pal highlights that the community is responsible for that absence.
“It’s not us – it’s the community who makes the allocation… You guys, to be exact.
Binance to Support the Incoming Polkadot Parachain Slot Auction
- Binance exchange will support the Polkadot (DOT) parachain slot auction.
- The company plans to start the event in November, this year.
- Doing this will help Polkadot achieve its ecosystem development.
Amid the waves blowing around the incoming Polkadot (DOT) parachain slot auction, Binance exchange has also announced that they are ever-ready to support the Polkadot’s parachain event.
With this synergy, Binance emphasized that it will soon start its Polkadot parachain slot auction program mainly in November 2021. Additionally, the month set to begin the event by the Binance team moves in line with the proposed Polkadot parachain slot auction date.
Meanwhile, Binance didn’t officially give the exact day and time that it will start the event. At the moment, the only news we have is that the team aims to start the parachain event in November.
To clarify, Binance intends to do its part and what it can to help influence Polkadot towards achieving its ecosystem development milestone. In turn, doing this will also push up the growth and adoption of the Polkadot parachain slot project to the mainstream.
Also, for further info about the event, the Binance team noted that they will keep their eyes on it and provide the community with more updates.
Until then, the team assured that the community should expect a separate announcement in no time and more details than what they have disclosed now. In addition, Binance advised that the community should stay tuned as they are bringing more initiatives ahead.