- Polkadot price begins its coiling up, just below its all-time high at $49.78.
- This consolidation reveals a rising wedge pattern, hinting at a minor pullback before DOT enters price discovery mode.
- A breakdown below $25.50 will invalidate the bullish thesis.
Polkadot price saw a consistent upswing over the past month. However, this rally might cost DOT in the short term as it resulted in the formation of a bearish pattern. Therefore, investors should expect a minor pullback, acting as a buying opportunity, before Polkadot price explodes to new highs.
Polkadot price prepares to enter unexplored territory
Polkadot price climbed 74% from September 29 to October 21 but slid into a consolidation soon after. In fact, the aforementioned rally seems to have set up multiple higher highs and higher lows that converged. Connecting trend lines to these swing points reveals a rising wedge pattern in play.
This technical formation forecasts a 32% downswing, determined by adding the distance between the first swing high and swing low to the breakout point. While the Polkadot price is still inside this setup, a decisive daily close below $42.50 will indicate a breakout.
In such a situation, the rising wedge forecasts a move to $28.89.
While the theoretical target is a little steep, the investors can watch the $38.77 and $33.42 support levels. If the selling pressure piles up, then market participants expect Polkadot price to hit its intended target.
Since the Polkadot price is just under its all-time high at $49.78, this drop would be a massive opportunity for long-term buyers to accumulate DOT at a discounted price. Therefore, the minor retracement is likely to be followed by a massive boost in buying pressure that allows DOT to slice through its all-time high and make a run at the 100% trend-based Fibonacci retracement level at $95. In some cases, Polkadot price could extend its run-up to hit the $100 psychological level.
DOT/USDT 1-day chart
While things are looking a little on the edge for the Polkadot price, a breakdown of the $25.50 support level will shatter the double-bottom formation and create a lower low.
Although this move is bearish and looks to invalidate the bullish thesis, a quick recovery to produce a higher high will, however, alleviate this looming bearishness. A failure to do so might knock Polkadot price lower.
Polkadot price analysis: DOT value depreciates below $35.89 as bears continue winning
- Price has decreased up to $35.89 level.
- Polkadot price analysis predicts downtrend.
- Support is found at $34.47 position.
DOT/USD 1-day price chart: Price levels collapse to $35.9 as bears show consistency
A constant downward trend has been going on for the past couple of weeks, as the selling activity almost reached its peak point. The bears have been dominating the price chart for the past 24-hours as well, as the price went down up to $35.893 moment. The situation is turning more unfavorable for the cryptocurrency buyers, as DOT value is constantly decreasing. Moving on, the moving average indicator is dictating its value at $43.84 at present.
Although the bulls are trying to find their way to recovery, the bears have been making their attempts unsuccessful. The volatility is unchanging, and the upper value for the Bollinger Bands Indicator is now at $53.22, and the lower value is at $34.47. The Relative Strength Index (RSI) score has declined up to 36.33.
Polkadot price analysis: Bulls succeed in rescuing price above $35.8
The four hours Polkadot price analysis predicts an uptrend as the price has undergone a sufficient improvement in the past few hours. The latest price movement is bullish, and the bulls have managed to escape the intensifying downtrend. The price is now at a much stable position, i.e., $35.88, and is expected to reach a further high point in the next few hours. The moving average value has moved down to $38.26, as the bears were leading earlier.
The increase in volatility suggests that the trends might shift soon because of bearish return. Nonetheless, the upper Bollinger bands value has reached $42.13, and the lower Bollinger bands value has moved down to $35.85. The RSI curve confirms the uptrend, and the score has been enhanced up to 35.60.
As the bearish momentum is getting stronger, a prominent rise in the selling activity has been going on for the past few months. The technical indicators chart is thus giving out a bearish signal. We can see that 13 indicators are at the selling level, ten hands are at the neutral level, and three are at the buying level.
The Moving Averages Indicator is giving out a solid bearish indication as well. A total of 12 indicators are on the selling side; two hands are on the buying side, while only one indicator is on the neutral side. The oscillators give a neutral hint as nine oscillators are on neutral point, whereas on the one hand, each is on the selling and buying points.
Polkadot price analysis conclusion
The daily and hourly Polkadot price analysis gives a bearish hint as the price has undergone a massive decline today. The price is now settling at the $35.89 level and is expected to lower further in the next couple of days. On the other hand, the hourly price prediction supports the buyers as the price covered bullish movement in the last four hours.
How Polkadot’s parachain auctions are benefiting Enjin
Enjin has emerged as one of the market’s top gaming tokens of late. Recently, it pictures significant growth on the charts too. However, the catalyst for this growth has been its Efinity Network which is striving hard to become what the Enjin community expects it to be.
Even so, the question remains – Can Enjin investors actually gain something out of this situation?
With the parachain auctions underway and Acala winning the first round, the hype around Enjin’s Efinity Network is growing massively. Interestingly, Acala or Moonbeam is already poised to win the first slot. So, the network is aiming to compete where it could win. And, also trying to get the fourth slot of the auction which will be decided on 2 December.
If it wins the slot, the Efinity Network’s mainnet will become operational by the end of 2021. Notably, it has designs for a $100 million Metaverse fund to support projects on the chain.
In response to the beginning of these auctions, multiple exchanges and protocols have been showering Efinity with support. Gate.io, BitMart Exchange, and Indodax are some examples that have either listed EFI or added support for depositing and trading. AAX exchange also announced a 5000 EFI NFTs giveaway in celebration of EFI’s listing.
As a result, right now almost 95% of all addresses are enjoying profits compared to two months ago when the figures were half of it. Consequently, investors once again have become active, something that is visible in the 160% jump registered on the charts.
However, it is not just retail investors who have become active. Whales too have been enjoying profits and even cashing it in.
Taking all the aforementioned instances into account, it becomes clear that the network is in a good space now. This can also be backed by the rising market value of ENJ. In fact, the indicator is at its highest in over seven months now.
Polkadot price prepares for 30% gains as DOT hovers above crucial support
- Polkadot price might slide below $37.55 to collect liquidity resting around the $35.47 support level.
- This downswing will provide sidelined buyers an opportunity to accumulate DOT before embarking on a 30% upswing to $45.72.
- A daily close below $35.47 will invalidate the bullish thesis and likely trigger a descent.
Polkadot price looks to be showing a slightly bullish reaction as it nears a support floor. This uptick in buying pressure could be a lure as DOT could slide lower in search of liquidity. Therefore, investors need to be aware of a potential wick to the downside.
Polkadot price prepares for a move higher
Polkadot price has been on a downswing for roughly three weeks and shows signs of reversal as it hovers above $37.55. While the 30% correction seems done, there is a small chance DOT might dive lower to collect the liquidity resting below the $37.55 support level and fill the fair value gap at $35.47.
This move will provide the buyers with a perfect opportunity to accumulate DOT at a discount. Regardless of where it drops to, investors can expect Polkadot price to kick-start its upswing toward $45.72 thereafter.
This upswing would constitute a 30% climb from $35.47 or 21% from $37.55. In some cases, DOT could extend to the $47.91 and $49.71 resistance barriers.
DOT/USDT 4-hour chart
While things are looking up for Polkadot price, a breakdown of the $35.47 support floor will indicate a weakness among buyers and increased selling pressure. This move will also invalidate the bullish thesis.
In this scenario, Polkadot price will retest the $34.27 support level, where it could give the rebound another go.