- Polkadot price dips below the bear flag.
- The risk of downside pressure remains, but dips continue to get bought.
- Oscillators warn of a strong sell-off unless bulls close above $40
Polkadot price has formed a double-top with the highs formed near $38 precisely one month ago. It is now trending lower with significant selling pressure over the past three trading days – but buyers have stepped in to keep the bodies of the daily candlesticks above the Tenkan-Sen.
Polkadot price has significant support beneath it; bulls will be tested
Polkadot price is at an inflection point that will likely dictate the trend over the next thirty days. It has broken out below the bear flag and appears to be testing that initial break as resistance. If it holds, then bulls will need to hold the Tenkan-Sen at $33.66. Failing that, there is a triple support zone at $32.25 with the 78.6% Fibonacci retracement, Kijun-Sen and Senkou Span A.
Polkadot is better positioned than most altcoins to experience a new and sustained bullish breakout. The Relative Strength Index has flattened out considerably, and the Composite Index may curl higher to cross above its fast-moving average. The level that bulls need to target as a close for Polkadot price is just above the 88.6% Fibonacci retracement at $37.75.
DOT/USD Daily Ichimoku Chart
However, Polkadot could fall under increased selling pressure if the aggregate market starts to sell off. The $25 value area is likely the next primary support zone as it includes the 61.8% Fibonacci retracement, and it is the same level where the Chikou Span would find support against Senkou Span B.
Bulls and bears will want to monitor Polkadot price if it re-enters the bear flag. If that were to occur, it could generate a flash move higher.
Polkadot to present buy opportunity before DOT makes new all-time high
- Polkadot price saw a 33% upswing on October 13 and set up a swing high at $44.84.
- Investors can expect DOT to retrace to the $35.48 to $38.76 demand zone before rallying higher.
- A breakdown of the 50% Fibonacci retracement level at $30.14 will invalidate the bullish thesis.
Polkadot price formed a triple tap set up between September 7 and September 29, triggering a massive uptrend. DOT set up a new swing high as a result and is currently mapping its next moves.
Polkadot price loads ammo for next leg-up
Polkadot price rose a whopping 71% between September 29 and October 16, setting up the third higher high at $44.84. This run-up was exhaustive as it has given rise to a consolidation phase.
Investors can expect DOT to retrace at least 10% to retest the demand zone ranging from $35.48 to $38.76. A dip into this support area will allow the buyers who rode the recent run-up to book profit and provide the sidelined investors an opportunity to accumulate for the next leg-up.
However, Polkadot price needs to stay above this area. Such a situation sets up DOT for another leg-up to retest the range high at $50.04.
A decisive close above this level will open the path for a new all-time high at $53.88m, coinciding with the 100% trend-based Fibonacci extension level.
If the buying pressure persists, Polkadot price could continue its ascent to 161.8% level at $71.4. This climb would represent a 68% ascent from the current position and would be a new all-time high.
DOT/USDT 1-day chart
Regardless of the optimism around Polkadot price, a breakdown of the demand zone, extending from $35.48 to $38.76, will hurt the bullishness around DOT.
Such a move will likely knock Polkadot price down to the 50% Fibonacci retracement level at $30.14. If the sellers produce a decisive close below this barrier, it will invalidate the bullish thesis and trigger a correction to $25.21 or $22.23.
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.