- Polkadot has announced the dates for the next five parachain auctions on the network
- The auctions will begin on September 1st and end on September 29th
- DOT has declined strongly after a bullish outbreak saw the token peak at $29.35 on August 21st
- On the 23rd and 24th of September, the founder of Polkadot, Gavin Wood, will be on Unfinished Live to talk about the decentralized future
The famed Ethereum killer, Polkadot, has had a barrage of good news rolling in for its development team. After completing its first batch of parachain auctions, Polkadot has announced the schedule for the next batch. How has the price of DOT reacted?
The price of DOT is witnessing a significant downswing after a bullish breakout. The bearish trend which began to engulf the market about 48 hours ago still persists.
Over the last 24 hours, the DOT token is down by 10.8%, making it the second-biggest loser in the top 10 biggest cryptos.
Five day price chart of Polkadot (DOT). Source TradingView.com
DOT now trades at $25.05. The downtrend now means DOT has a market cap of $24.8 billion, the 9th largest amongst all cryptocurrencies.
The forthcoming parachain auctions on the Polkadot network are expected to bring some bullish momentum to the DOT token. A Twitter user identified as Edwin Grinner wrote;
I think batch 2 of the parachain auction on @kusamanetwork will be explosive and thrilling. My birds are ready for auction. And you? $KSM $BSX $KILT
Recent Developments and Future Events
One of the most awaited developments in the Polkadot community is here; crowdloans. The crowdloan is an on-chain way of helping parachain teams raise the token bond required to participate in a parachain slot auction.
The announcement of crowdloans will lead to the next major event on the network. The second batch of the parachain auction is an event between Polkadot and Kusama that involves members of the community voting for projects that intend to build on either of the blockchains.
The first batch of 5 parachain slot auctions on Kusama was completed successfully in June and July. Karura, Moonriver, Shiden, Khala, and Bifrost emerged as the winners of the parachain auction. Kasuma has announced the dates for the subsequent five auctions as;
- Auction 6 – Sept 1, 2021
- Auction 7 – Sept 8, 2021
- Auction 8 – Sept 15, 2021
- Auction 9 – Sept 22, 2021
- Auction 10 – Sept 29, 2021
The DailyCoin team discovered a lot of enthusiasm among the Polkadot community about the upcoming parachain auction. A Twitter user identified as Cryptunix wrote;
“There lies a GREAT opportunity in the fact that most people do not even know about the upcoming Kusama and Polkadot parachain auctions. Let alone understanding its mechanisms and its impact on the $KSM & $DOT price. Parachain auctions are basically the mother of all ICO's/IDO's.”
Another ardent believer in Polkadot, Jame Wo, believes that
“Joining the Polkadot & Kusama Parachain Auction could be the best way of making investment!”
On the 23rd and 24th of September, the founder of Polkadot, Gavin Wood, will feature on Unfinished Live. There, Wood will join Parity Technologies and the Web3Foundation to discuss a decentralized future and “how new technologies can fulfil the promise of a decentralized web.”
On The Flipside
- Regardless of the giant strides taken by the Polkadot ecosystem which saw it become ranked as the 9th largest cryptocurrency, members of the Polkadot community still believe the project is undervalued
- This year-to-date, DOT is up by more than 270%
- Members of the community believe that DOT will cross $40 for a new 3-month high following the auction
Polkadot (DOT) Price: Technical Analysis
Following its July low, Polkadot made price moves we haven’t seen in the token for a long while. After dropping to as low as $10.42 on Jul 20, the DOT tokens recorded a 185% gain – peaking on Aug 21st.
The highest value recorded for the DOT token was $29.35. In the 32-day period, the bullish momentum was interrupted by only seven negative days, with only one day exceeding -4%.
The daily chart of DOT showing the sharp rise from Jul 20th: Source Binance
This price drop has seen DOT fall below the 70.5% Fibonacci retracement level at $25.06. If the selling pressure pushes DOT below the $24.08 support level, we could see the price of Polkadot retest the range low at $23.25.
The 4H chart of DOT: Source Binance
For the bulls to kick in, we have to see a decisive 4H candlestick closing above $25.06. When that happens, Polkadot will be ready to retest the 50% Fibonacci retracement level at $26.32.
For now, we will need to wait for the price action to give us more indication of whether bulls are locking in their quickly earned gains or if they are bravely adding more.
The Polka Community
Polkadot remains one of the most community-involved blockchain projects. Recently, DOT holders voted to increase the validator count from 300 to 399. However, it failed to garner enough votes to pass.
In reference to the upcoming auction, an ardent Polkadot follower identified as Peggy Dowell wrote;
The cool thing about #Kusama and #Polkadot is that they can each employ a candle auction format to allocate #parachain slots. There are many good resources that explain how this mechanism works in practice
Why You Should Care?
Since the launch of Polkadot, it has been a favourite altcoin of many users because of its growth. There are currently over 480 projects building on the Polkadot blockchain, highlighting the efficiency of the network. In addition, the upcoming parachain auction is expected to add significant functionality to Polkadot and give DOT a price boost.