- Gavin Wood, CEO of Polkadot, believes that projects on Ethereum face economic constraints, unlike on Parachains.
- Polkadot’s free application execution model offers equal opportunity to protocols that launch on Parachains.
- Parachain auctions have reduced the circulating supply of Polkadot tokens, driving DOT prices higher.
Polkadot’s Parachains offers projects a free execution model on its network, offering freedom from economic constraints. The first Parachain auction has ended, and the reduction in DOT supply is expected to drive the token’s price higher.
Polkadot makes strides in Parachain race after concluding the first auction
Polkadot recently concluded the auction for its first Parachain slot, where Acala, a DeFi liquidity hub, won. Gavin Wood, CEO and creator of Polkadot, believes that the Parachain lease economic model does not need users to buy a platform token or learn more about the DOT framework.
On the Ethereum network, developers are expected to utilize the native token ETH. The Ethereum network’s transaction fees are relatively high, driving projects to alternatives like Cardano and Polkadot.
Wood was quoted as saying:
Users of applications built on Ethereum are enslaved by it economically. These users must own Ether on Ethereum and often some other token that allows them to use any application built using Ethereum smart contracts. This is a huge limitation.
Polkadot’s circulating supply has dropped with the rise in the percentage of staked DOT in Parachain auctions. Historically, this positively impacts DOT price.
Brad Laurie, a cryptocurrency analyst and YouTuber, is bullish on Polkadot. Laurie considers DOT superior to Bitcoin and Ethereum.
.@coinbase gets why @Polkadot is such an important tech eco!
"The $DOT protocol is designed to allow unrelated #blockchains to securely interact, so that value or data can flow between, say, the #Ethereum & #Bitcoin blockchains without any intermediary"https://t.co/p1qCDCbZDV pic.twitter.com/d9PaRU0BtD— Brad Laurie (@Brad_Laurie) November 21, 2021
Cryptocurrency analysts at the YouTube channel “unisonfinance” have set a target of $50 for DOT price. The analysts have evaluated the DOT price trend and are bullish on the altcoin. The next target above $50 is $70 in Q1 2022.
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.