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Polkadot

What does Polkadot’s descending triangle mean for its price

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Polkadot’s correlation coefficient with Bitcoin has steadily increased in the first half of 2021. During this period, DOT registered all-time highs during the month of February, April and May. However, its strong relationship with BTC was both a boon and bane. The king coin’s steady decline from $40,000 had a negative effect on DOT’s price as it retraced from $26 to $19 in the last seven days.

At the time of writing, Polkadot traded at $19.5, down by 7.7% over the last 24 hours and with a market cap of $18.6 Billion.

Polkadot Daily Chart 

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Source: DOT/USD, TradingView

Since the 19th May crypto sell-off, Polakdot has formed three lower highs- at $31, $28, and $26. Since losses were maintained above a defensive region of $19, a descending triangle appeared in the process. This also meant that DOT could see more losses over the coming days in case of a breakdown from the pattern. This would likely see the digital asset move back within its demand zone of $14-16.

Reasoning 

DOT’s market was increasingly bearish at the time of writing. Prices slipped below their 20-SMA (red) on 17 June. Relative Strength Index was denied a break above 50 and moved south at the time of writing. A fall back into oversold territory would translate to weaker price action before a bounce back. On Balance Volume’s downtrend suggested that selling pressure was still dominant in the market. Moreover, MACD line was close to a bearish crossover with the Signal line.

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Considering the above factors, DOT was expected to dip further over the coming days. The price could reset within its demand zone of $14-16 before its next upcycle. Traders could capitalize on this movement by setting up short trades. Visible Range showed that the point of control rested around $16.8, and an additional retracement below this zone was unlikely.

Conclusion

The formation of a descending triangle threatened further losses in the coming days for DOT. Bearish signals were present all across the board as sellers remained dominant in the market. A breakdown from DOT’s pattern could see it move back towards a demand zone of $14-16.

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Polkadot

Polkadot price bound for 50% breakout if DOT bulls can overcome this hurdle

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  • Polkadot price is consolidating between two vital levels at $47.96 and $38.69.
  • A decisive close above either of these levels will kick-start a new rally.
  • DOT is likely to embark on a 50% ascent if it surpasses $47.96 due to the market’s bullishness.

Polkadot price is currently facing a decisive moment as it trades between two significantly troublesome barriers. While overcoming these hurdles will be trying, doing so will lead to a volatile move.

Polkadot price at make or break point 

Polkadot price has risen roughly 75% over the past 24 days and is currently sitting between $47.96 and $38.69, two barriers that will determine the direction in which DOT will go next. The former barrier is sitting just under DOT’s all-time high at $49.78, therefore, investors already in the trade could choose that point to book profits, making it a challenging level to crack.

In a scenario where buyers manage to overcome the selling pressure and produce a decisive close above this barrier, it will open the path to a new uptrend. The 100% trend-based Fibonacci extension level at $53.90 is where the Polkadot price may make a new high.

Clearing this blockade will eventually push the DeFi token to the next barrier at $71.45, coinciding with the 161.8% trend-based Fibonacci extension level.

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The ascent from the $47.96 to this record-high would constitute a 50% gain.

DOT/USDT 1-day chart

DOT/USDT 1-day chart

On the other hand, if the Polkadot price fails to slice through $47.96, it will indicate that  buying pressure is waning. In this situation, DOT might revisit the $38.69 support floor, where the bulls can make a comeback.

If the Polkadot price flips this support level into resistance, it will trigger a 15% crash to $33.03. A breakdown of this level will lead to DOT retesting the $25.50 barrier, constituting a 33% descent from $38.69.

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Cardano

Cardano, Polkadot and Four Additional Altcoins Are Set To Explode in 2022, According to Crypto Trader Austin Arnold

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Crypto trader and Altcoin Daily host Austin Arnold thinks six major altcoins are gearing up for massive rallies in the next year.

In a recent crypto update, the YouTube star tells his 1,040,000 subscribers that Ethereum layer-2 (L2) scaling solution Polygon (MATIC) is gaining momentum after landing a partnership with the $20 billion gambling company DraftKings.a

Arnold shares a statement from DraftKings’ president of global product and technology, Paul Liberman, explaining how the company is positioning itself to grow alongside Polygon.

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“Although DraftKings marketplace is still in its nascency, we are bullish on the possibilities that blockchain, NFTs, cryptocurrency and more will present as we prepare for Web 3.0 alongside Polygon and the new innovations ahead for digital collectibles.”

Next, Arnold looks at the decentralized interoperability platform Polkadot (DOT). He points to a recent tweet from Polkadot founder Gavin Wood explaining that there are currently just under 19 million DOT tokens stored in the DOT treasury to fund community projects.

If any DOT goes unused, it gets burned. Currently, the Polkadot treasury is burning 239,988 tokens every month, according to Gavin Wood.

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“Either burned or used, the DOT token is only getting more scarce. We have seen a rally in the DOT price recently. This could be linked to some exciting developments ahead, such as the upcoming parachain launch and slot auctions – these parachain auctions will take DOT off the market as well.

And with the first 11 parachain auctions coming to Polkadot next month, along with the 100 or so available slots to be filled, this could boost Polkadot’s presence in the crypto sector, and could cement the multichain system’s rising status.”

The third coin Arnold looks at is the supply chain management protocol VeChain (VET). The trader highlights that VeChain recently landed a partnership with major logistics company DHL for enterprise NFT (non-fungible token) issuance.

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“This collaboration with DHL China, one of the first things it will allow customers to experiment with is customize the DHL mascot and then mint it as NFTs on the VeChainThor blockchain solution.”

Next up is the smart contract platform Cardano (ADA). Arnold notes that Cardano appears to be gaining more traction after landing partnerships with television satellite provider DISH and announcing that the network has received $100 million for investment in Cardano-focused projects in Africa.

“Simply put, there are so many people in more developing areas of the world that don’t have financial stability, and that can be changed with Cardano with blockchain.”

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Another coin on Arnold’s list is the decentralized oracle network Chainlink (LINK). He notes that despite the token’s lackluster performance over the last few months, he believes there is still massive upside for LINK to realize in the market as partnerships continue to rise month-over-month, with 84 integrations made just in September.

“I get it, but in my opinion, Chainlink still has a lot of room to grow. Think about this: Chainlink already has a ton of exclusive, big partnerships with big companies – Google and Oracle to name two – over 75 different blockchains already use Chainlink technology, as well as being used by many data feeds, including USD [US dollar] currency pairs. That’s a strong foundation.

My speculation is this: over these next few years, as DApp [decentralized application] platforms like Ethereum [ETH], Cardano, Solana [SOL], Polkadot, Elrond [EGLD], etc. continue to fight for market share… Chainlink is integrating with all of them… Something to think about.”

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Finally, the crypto trader thinks that the leading smart contract platform Ethereum is gearing up for a huge 2022. He notes that Ethereum developers announced that ETH is planning to make the transition into Ethereum 2.0 in May-June of 2022, which will convert the blockchain to a proof-of-stake protocol.

“The code should be ready around February 2022. The merge to mainnet, to ETH 2.0, in June of 2022 at the earliest. Next year will be known as the year of ETH. That’s where DeFi [decentralized finance] is, that’s where NFTs are.”

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Polkadot

Institutions pour $3.6M into Polkadot ahead of parachain auctions, pushing DOT to breakout

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  • The 12th auction on Kusama is set to commence on October 23. 
  • The staking rate on Polkadot has dropped to 58.5%; it has relatively stayed constant for Kusama at 42.8%.
  • Kraken announced support for Parachain auctions.
  • The platform empowered clients to invest $35 million in Kusama auctions.
  • The DOT founder recently announced a $774 million development fund for DeFi. 

Digital asset managers have reported a rise in the institutional capital inflow in Polkadot as the overall cryptocurrency market capitalization climbs higher. A Polkadot founder announced $774 million dedicated for developing DeFi projects. 

Polkadot is a top choice among institutions, investment flow in DOT spikes

Over $80 million in institutional investment flowed into cryptocurrency funds last week. Of the $80 million, $3.6 million was dedicated to Polkadot products. 

Institutional inflow by assets as of October 15,2021

Institutional inflow by assets as of October 15, 2021.

The Polkadot ecosystem has been abuzz with new updates since the announcement of the Parachain launch. The 12th Kusama auction is set to go live on October 23. The new proposal on Kusama aims to schedule 1 auction per week for the next 48 weeks. Winning parachain projects will be onboarded at the beginning of the following lease period as per the proposal. 

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Proponents expected the staking rate on Polkadot to remain steady; in contrast, there was a drop to 58.5%. Kusama’s staking rate remained steady at 42.8%. The news of the Polkadot-Kusama bridge project led to a bullish outlook on KSM price since it boosts the interoperability of assets on both blockchains. 

Leading cryptocurrency exchange Kraken announced support for Parachain auctions. Last week there was an announcement that the world’s largest cryptocurrency exchange, Binance, supporting the auction. Clients on Kraken’s platform invested over $35 million in Kusama parachain auctions. 

Gavin Wood, the founder of Polkadot and Kusama, recently announced $774 million slated for a development fund for DeFi. Wood teased that the fund is ready to spend on innovative ideas. Instead of burning slowly, the network’s governance is keen on investing in anything it believes is valuable. 

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FXStreet analysts have evaluated DOT price and predicted that the altcoin is primed to hit higher highs after cracking $40. 

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