Connect with us

Polkadot

Four reasons why Polkadot price will double by end of October

Published

on

  • Polkadot price is in for a massive run-up as two technicals point to a bullish outlook.
  • The recent swing lows combined with the RSI show the formation of hidden bullish divergence, adding a tailwind to the optimistic scenario.
  • The adoption of DOT by FCA registered digital asset custodian Digivault adds credence to the positive outlook.

Polkadot price has been stuck in a consolidation phase for roughly a month. However, this trend might be coming to an end due to three significant reasons. As a result, investors can expect DOT to start a massive bull rally over the coming month.

Technicals point to an inevitable uptrend for DOT

Polkadot price formed the first swing low at $25.21 on September 8 and rallied roughly 53% to create a swing high at $38.76, coinciding with the 70.5% Fibonacci retracement level. 

Since the buyers could not maintain their bullish momentum, DOT retraced to erect the second swing low around the same as the first one at $25.21. The resulting run-up set up a lower high at $33.61 and corrected to form the third swing low a little higher than the previous two at $26.13.

These three swing lows are what is known as a triple-bottom pattern or a triple-tap setup. This technical formation is similar to the double-bottom reversal pattern, which often marks the end of a downtrend and kick-starts a new uptrend.

Advertisement

The second significant reason for this optimism is the green ‘one’ buy signal flashed by the Momentum Reversal Indicator (MRI) on the 12-hour chart.

This technical formation forecasts that the bottom is in and that a one-to-four candlestick upswing is likely.

Therefore, market participants can expect Polkadot price to climb past the recent swing high at $33.61 and make a run at the 70.5% Fibonacci retracement level at $38.30.

Advertisement

If the bid orders continue to pile up, pushing Polkadot price to produce a decisive 12-hour candlestick close above the 79% Fibonacci retracement level at $41.68, it will hint at the uptrend’s continuation.

In this bullish situation, DOT could ascend to the range high at $50.04, constituting a 100% gain.

DOT/USDT 12-hour chart

DOT/USDT 12-hour chart

While the MRI and the triple-tap setup play a pivotal role in forecasting a bullish outlook, the hidden bullish divergence seals the deal.

Advertisement

From August 26 to September 28, Polkadot price formed higher lows, suggesting a potential bullish trend in play. However, at the same time, the Relative Strength Index (RSI) created lower lows.

This forking between the price and the RSI is known as hidden bullish divergence. The result of such a technical formation often results in an uptrend. In DOT’s case, it strengthens the already optimistic narrative that the price is primed for a bull rally.

DOT/USDT 12-hour chart

DOT/USDT 12-hour chart

Fundamentals support the bullish thesis

The last and the most crucial reason this optimism will find its way to push Polkadot price higher is the milestone achieved as a Financial Conduct Authority (FCA)-approved cryptocurrency custodian Digivault announced that it will custody DOT.

Advertisement

Digivault is the first stand-alone cryptocurrency custodian to receive a go-sign from the FCA. Since this custodian is seeing massive interest from retail investors and institutions, the recent development will encourage users to buy and hold DOT. In addition to Polkadot, the company offers custodial services for Bitcoin, Ethereum, USDC, ERC-20 and ERC-1400 products.

CEO of Digivault Rob Cooper added,

While the advanced nature of Polkadot makes the custodial integration more complex than other blockchains, we felt that it was essential to give people the ability to hold such a unique asset within a regulated custodian.

He also stated that their move to acquire a license for Polkadot custody was also a factor of interest from its customers, further adding a tailwind to DOT’s bullish thesis.

Advertisement

News Source

Cardano

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

Published

on

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.

Advertisement

“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.

Advertisement

“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.

Advertisement

“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.”

Advertisement

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.”

Advertisement

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.”

News Source

Advertisement
Continue Reading

Polkadot

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

Published

on

  • 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. 

Advertisement

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. 

Advertisement

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

News Source

Advertisement

Continue Reading

Polkadot

Polkadot DOT Price Analysis: Bearish Divergence on the Weekly Chart Could Slow Down Upside Momentum on the Intraday Level

Published

on


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.

Advertisement

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

Polkadot
chart by Tradingview

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.

Advertisement

Polkadot DOT Weekly Chart Analysis

Dot

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

Advertisement
Dot

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

Dot

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.

Advertisement

Polkadot DOT Intraday Levels

  • Spot rate: 41.35
  • Mid–Term Trend [H4]: Bullish
  • Volatility: Medium
  • Support: $32.25 and $39.52
  • Resistance: $44.78

News Source

Continue Reading