The crypto market could be surprised in the near future by a nice Polkadot (DOT) rally, as its network begins to grow rapidly thanks to one key factor.
At the time of writing, DOT is trading at $ 30.02, accumulating a 7.04% gain in the last 24 hours.
Below we review the current situation of this cryptocurrency, and what is that factor that could be driving the price up.
The excitement for parachains
When I speak that Polkadot could begin to see an acceleration in its growth, it is because the first parachains auctions will soon be launched, to obtain one of the limited and highly demanded slots within the network.
We recently saw the success of the first auction of Kusama network parachains slots, a blockchain that is used to test developed applications and then launch them on the Polkadot network.
While this was happening, the KSM token, native to the Kusama network, soared higher with great force, reaching even new all-time highs.
The great positivity around auctions may be giving us an idea of what might happen to the DOT price in the near future.
To understand the upward effect of auctions on the price of the cryptocurrency, it is necessary to define that users vote for the participating projects, blocking DOT as a way to finance their startup. This in turn puts pressure on the circulating supply of Polkadot’s native cryptocurrency.
Polkadot technical analysis (DOT), to forecast what may happen in the near future
After the flash crash that occurred last Tuesday, the price is now quite beaten from the daily chart; however, the short-term trend is still bullish.
The moving averages 8 EMA and 18 day SMA are crossed to the upside, and may be working as dynamic supports before resuming the trend.
The 200-day SMA is also holding bullish, and it is working as support.
To think about selling, the support at $ 27.88 must be crossed, which may be opening the way to a fall to $ 25.70 or $ 23.55.
DOT weekly chart
On the time frame with weekly candles, there is a positive outlook for the near future of Polkadot (DOT).
The moving averages 8 EMA and 18 week SMA are crossed to the upside, and are working as dynamic supports.
The medium-term trend is bullish, thanks to the succession of increasingly higher lows and highs.
This trend is in turn signifying the development of long-term momentum, which could easily seek to set new all-time highs.
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