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Polkadot holds gains over $40 following 18% jump on ‘Parachain Auctions’ news

Polkadot holds gains over $40 following 18% jump on ‘Parachain Auctions' news
Jordan
Major
1 week ago
3 mins read

On-chain governing council members of the Polkadot (DOT) network have given their unanimous permission to hold the first parachain auctions, a major accomplishment since it brings the last key technological aspect of the whitepaper to fruition.

Indeed, next month the highly anticipated parachain auction procedure, in which projects will be given slots for construction on the Polkadot cryptocurrency network, will take place. 

Currently, the ‘Ethereum-killer’s’ launch of parachain auctions has led to a price rally for DOT up 18% in the last 24 hours and up 28.08% over the previous seven days. At the time of publication, DOT is ranked the eighth largest digital asset with a market capitalization of $41 billion, according to CoinMarketCap.com.

DOT 7 day price char. Source:CoinMarketCap.com

In response to the news, the DeFi asset is trading just a few dollars shy of its all-time high of $49.39 set on May 15, 2021. 

The auction begins on November 11

Furthermore, Polkadot said in a statement on October 13 that it was now ready for parachains — sidechains that operate in addition to the main relay chain – to be implemented. Thus far, parachains have been auctioned on Kusama, Polkadot’s “canary network” for testing and development.

With a rise of 18.11% percent in the last 24 hours to trade at $373.83 as of the time of writing, KSM has also done nicely.

The parachain auctions on the blockchain were authorized by the members of the blockchain’s governing council; the Polkadot council officials said the first auction would begin on November 11. 

In order to achieve its objective of multichain interoperability, Polkadot’s community has accepted the idea for its first parachain auctions. By allowing parachain auctions to be launched, the layer-1 project was able to achieve its objective of making blockchain networks compatible with one another.

Crypto analysts indicate

Following the announcement of the start of its parachain auctions, the price of Polkadot saw a meteoric rise. It attempted to challenge its all-time high price of $49.35 but fell short at $43.23 per native token.

In order to resume its rise, Polkadot may need to find support at the upper limit of the ascending parallel channel, which is roughly the high end of at $39. The Polkadot price may be able to hold on to this level of support, increasing the likelihood that the DOT will achieve the bullish goal of reaching its previous all-time high.

Elsewhere, prominent crypto analyst Michael van de Poppe only had to say that DOT is on fire.

Meanwhile, trading expert Josh Rager has said that as long as DOT breaks the price resistance at $37.51, then it’s off to the races. 

“I don’t think it will be long till we see new highs, in Q4.”

Ultimately, DOT has now broken over this resistance level; whether it can surpass its previous all-time high remains to be seen, but the fourth quarter is still ongoing as many analysts expect altcoins to follow Bitcoin (BTC) and Ethereum (ETH) upwards trajectory. 

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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