Yesterday’s DOT price run saw the crypto rise approximately 31% to a high of around $43.10. The rally followed Polkadot’s landmark milestone as it prepares to launch parachain auctions. The $40 support wall is crucial to DOT sustaining the bullish momentum.
DOT price is hovering around $40.60 on most crypto trading platforms. The Polkadot Price is up approximately 17.28% over the last 24 hours with a daily trading volume of $5,769,941,983 which has itself increased by 206% over the same period.
The ‘Ethereum-Killer’s’ market capitalization as crossed the $40 billion mark to $40,062,412,907 in a rally that saw DOT rise approximately 31% from a low of $33.80 to a high of $43.10 on Wednesday. This was only $7.75 short of the May 15 All-Time High (ATH) above $50.85.
So, what is the hind wind behind Polkadot’s latest rally?
Polkadot Debuts Parachain Auctions
The Polkadot (DOT) blockchain has announced that it is anticipating the launch of parachain auctions following a unanimous vote of the network’s on-chain governance council members. The launch is a significant milestone in the achievement of the final core technical element of Polkadot’s Whitepaper published five years ago.
Parachains are uniquely distinctive layer-1 blockchains that run alongside the main Polkadot network, which is also tethered to the Polkadot Relay Chain.
The protocol co-founder Gavin Wood said that Polkadot now holds the technical capabilities to implement parachains, auctions and crowdloans for the first time. The first auction is expected to be held on November 11 after the Polkadot Council voted in favor of Motion 118 and is expected to continue at a rate of one per week for five consecutive weeks until the final auction on Dec. 9.
It is important to note that Polkadot values quality over quantity, hence there will be a 75% capacity of projects to that witnessed on Kusama, Polkadot’s sister network.
Following the announcement, Polkadot price rallied over 31% to reach a new swing high around $43.10.
DOT Price Should Hold Above $40 To Sustain The Bullish Momentum
DOT price prediction remains bullish as the smart contracts token trades above the $40 psychological level.
A daily closure above the immediate support around $40.34 could bolster the bulls to push Polkadot price above the immediate resistance at $41.62. After which the May 15 ATH above $50.85 would be the next logical move.
The positive SAR, the position of the MACD in the positive region and the entry of the Stochastic RSI into the overbought region validate this bullish outlook. These are expected to boost investor appetite to buy the cryptocurrency.
DOT/USD Daily Chart
However, if things go awry for DOT price and drops below the immediate support around $40.34, the ‘Ethereum-Killer’ may drop below the $40 psychological level to tag the $35.15 support wall. A fall below this point could see Polkadot drop further to tag the $30 psychological level.
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