- Polkadot price approaching neckline break of a head-and-shoulders pattern.
- Chikou span below the candlesticks signals substantial and imminent price collapse soon.
- Oscillator levels support sustained selling pressure.
Polkadot price remains a laggard for how little it has moved from its recent swing highs compared to its peers. As a result, steep retracements towards the low $20 range are likely.
Polkadot price falls below 61.8% Fibonacci retracement and enters the Cloud
Polkadot price is currently under extremely bearish trading conditions within the Ichimoku Kinko Hyo system. Polkadot bulls failed to support Polkadot enough to maintain the Chikou Span above the candlesticks and instead have allowed the Chikou Span to drift well below the candlesticks.
The neckline of a head-and-shoulder pattern shares the same 27.34 value area as the 61.8% Fibonacci retracement level – a level that Polkadot price is currently trading below. The projected target zone for sellers is a zone that buyers may also find extremely attractive: $22. There is a collection of some massive support levels at the $22 value area.
There are two 50% Fibonacci retracement levels near the $22 level. The first 50% Fibonacci level is from the swing of May 15 to July 20th, while the second is from July 20th to September 14th. Between those 50% levels is the most substantial support/resistance within the Ichimoku system: Senkou Span B. Additionally, there is a high volume node at $22 as well.
DOT/USD Daily Ichimoku Chart
Buyers anticipating a discount should be aware that as bearish as Polkadot price current is, it is not hard for Polkadot to return to a bull market. If buyers can elevate the Chikou Span to above the candlesticks ($35), nearly all conditions with the Ichimoku system for a solid bullish breakout could be met. Evidence of invalidation of any move south would be consistent daily support against Senkou Span A.
Cardano, Polkadot and Four Additional Altcoins Are Set To Explode in 2022, According to Crypto Trader Austin Arnold
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.
“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.
“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.
“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.”
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.”
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.”
Institutions pour $3.6M into Polkadot ahead of parachain auctions, pushing DOT to breakout
- 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.
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.
Based on the community's response to the Polkassembly post "The Case For Continuous Auctions", a council member submitted a motion for council to vote on scheduling the next auctions. If passed, the first auction will be at block #9777777 [Oct. 23, 2021].https://t.co/Av8OpeMxY8— kusama (@kusamanetwork) October 18, 2021
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.
The @Polkadot treasury currently has 18,936,300 DOT (DOT, not USD – do the math) in it ready to spend on *your* ideas for building, improving, educating and indeed, anything else that the Polkadot governance believes valuable.— Gavin Wood (@gavofyork) October 17, 2021
FXStreet analysts have evaluated DOT price and predicted that the altcoin is primed to hit higher highs after cracking $40.
Polkadot DOT Price Analysis: Bearish Divergence on the Weekly Chart Could Slow Down Upside Momentum on the Intraday Level
Polkadot’s Parachain auction is set to launch on 11 November ’21 with speculations around which five projects will win the available slots.
The Moonbeam project an EVM compatible blockchain is the first project believed to get the first slot launch on the Polkadot ecosystem.
Acala project is the next project that analysts believe is almost guaranteed a slot on the Parachain, as the project is expected to provide financial applications such as a multi-collateralized stablecoin [aUSD], a trustless staking derivative [liquid dot], and an AMM DEX.
The last two notable projects also worthy of slots are the Bit. Country and Phala Network projects.
Read on as we dive dip into the price charts of the DOTBTC and DOTUSDT.
Polkadot vs Bitcoin BTC – DOTBTC Weekly Chart Analysis
The DOT vs. BTC was faced with a second bearish divergence pattern after recovering from an earlier 64% price slump from high demand for BTC.
Bear-trap candlestick formation seems to mark an end to the current price correction and we may see the DOTBTC shoot above the bearish divergence trend line and resistance level on 13 September ’21.
Polkadot DOT Weekly Chart Analysis
The ADAUSDT flags a regular bearish divergence pattern after setting a new ATH at $44.78. We should expect the DOT price to dip towards the $25.50 support and a continuation of the uptrend if the price stays above the 20 September support.
Further breakdown of the $25.50 support should see the price collapse to the lower $10.37 support.
Polkadot DOT Daily Chart Analysis
The daily time frame of the DOTUSDT shows the pair entering back into an uptrend on 07 October and continues to trade above the level-25 at press time.
The current DOT price continues to trade within the bearish and bullish divergence trend lines established on 14 and 21 September ’21 [$38.77 and $25.50].
Meanwhile, a second hidden bullish divergence is building up at press time and we can expect a price surge above the $44.78 resistance.
Polkadot DOT 4HR Chart Analysis
The RSI dipped below level-25 on the 4HR time frame signaling a wide range hidden bullish divergence when we compare the RSI level-21 to level 23 [12 October 08:00].
This bullish divergence should be sufficient for us to see a bullish trend continuation. However, a breakdown of the $39.52 support could send the DOT price tumbling down to the $32.25 support.
Polkadot DOT Intraday Levels
- Spot rate: 41.35
- Mid–Term Trend [H4]: Bullish
- Volatility: Medium
- Support: $32.25 and $39.52
- Resistance: $44.78