- Polkadot price is currently grappling with a crucial resistance level at $17.66.
- A decisive 6-hour candlestick close above $17.66 will confirm the start of an uptrend.
- However, a breakdown of the $15.70 support floor will invalidate the bullish thesis.
Polkadot price experienced an extended and exponential uptrend from July 20. As the bullish momentum grew exhausted, DOT underwent a retracement which pushed it below a crucial support level.
Reclaim of the said barrier will indicate a resurgence of buyers and potentially trigger a new bull run.
Polkadot price anticipates a catalyst
Polkadot price rallied nearly 90% from July 20 to August 1, but the Momentum Reversal Indicator’s (MRI) sell signal in the form of a red ‘one’ six-hour candlestick combined with the exhaustion of the bullish momentum, created a perfect concoction that resulted in a 15% correction.
This downswing sliced through a vital support level at $17.66, flipping it into a resistance level. Therefore, a decisive close above $17.66 will indicate that the bulls are back in town, which could trigger a massive buying spree, pushing Polkadot price higher.
The $19.13 resistance level is the first barrier that the buyers will encounter. Breaching it will push DOT to $20.73, which constitutes roughly 21% higher from the current position.
DOT/USDT 6-hour chart
While the upswing narrative seems straightforward, investors need to note that the rally could begin after a retest of the $16.50 support barrier. Such a move does not negatively impact the optimistic scenario outlined above.
However, a retest leading to a breakdown of the $15.70 demand barrier will invalidate the bullish thesis. In some cases, this move might lead to a 10% downswing to $14.17.
Polkadot Kusama bridge could go live by end of 2021, traders bullish on DOT
- Development of the Polkadot-Kusama bridge is currently underway; the DOT team predicts launch by the end of 2021.
- Rococo testnet has turned into a community-maintained parachain testbed in the latest update.
- Analysts are more bullish on KSM tokens than DOT, as bridge development nears completion.
- Polkadot’s social media activity exploded after the parachain launch announcement.
Polkadot is nearing its parachain auctions in November 2021. The post-auction phase of Kusama led to a drop in the price of KSM tokens. If the same occurred to DOT, the price of the altcoin would plunge in December 2021.
Polkadot network goes through major upgrades; analysts predict massive rally in Q4 2021
The team behind the development of Polkadot has announced that the Polkadot-Kusama bridge, for interoperability of assets on both blockchains, will go live by the end of 2021.
Pseudonymous cryptocurrency analyst @DonnieBigBags has predicted that the importance of the KSM token would go up. Following the launch of the bridge, all native KSM assets will be interchangeable with assets on the DOT blockchain, boosting the utility of the Kusama network’s tokens.
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.