After three months of sustained rally with occasional velocity breakers, Polkadot made an ATH of $51.59 forward of its first parachain auctions getting permitted. The parachain auctions had been in growth all year long. The euphoria surrounding their 4 November launch appeared to be the primary driving drive behind the altcoin’s rally to a brand new all-time excessive. Nevertheless, there was extra to DOT’s rise than simply that.
Whereas the stage was set for DOT to achieve a brand new ATH, as highlighted in our earlier article there was nonetheless extra scope for progress each by way of growth in addition to worth. So, right here’s how the eighth-ranked alt’s trajectory might look sooner or later:
A vibrant November
Parachain auctions, enable DOT builders to register their tasks on a parachain (a person blockchain on the Polkadot ecosystem) and get crowd mortgage funding for his or her tasks offered the governing Polkadot Council provides the thought its inexperienced gentle. The extremely anticipated auctions that will go on all via November are set to make sure DOT’s rally within the coming weeks.
Additional, DOT’s worth reached ATH amid excessive euphoria from the retail crowd. Notably retail FOMO has performed a significant function in DOT’s rally as seen in DOT’s excessive commerce volumes. The results of the identical was an enormous uptick of virtually 50% in Polkadot’s market cap dominance.
Appeared like DOT rode on a wave of excessive social volumes in addition to excessive constructive social sentiment. Aside from the excessive spot volumes, DOT’s perpetual and futures market appeared to be glimmering too.
In reality, Open Curiosity on Polkadot’s futures market jumped by 18.51% and on the Perpetuals market by 14.70%. Additional, 1 November noticed the best variety of quick liquidations after 13 October.
Excessive community exercise boosting growth
Lively addresses for DOT jumped by nearly 40% on 1 November as its worth neared all-time excessive ranges, highlighting contributors flocking on the community forward of the parachain launch.
Nevertheless, other than first rate lively on-chain exercise, the hidden purpose behind this rise could possibly be the notable rise in growth exercise which was at an all-time low until 30 October and eventually picked up breaking out of its low pattern.
Alongside first rate growth exercise, whale accumulation too is noting ATH figures as % of stablecoin whole provide held by whales with greater than 5 million USD was at an ATH.
Nevertheless, since DOT reached an ATH and contributors wished to leap in on the bandwagon with DOT going through minor consolidation at press time, a transfer beneath $47 could be an excellent purchase zone for the alt.
For now, nevertheless, the following goal for DOT could possibly be $55.6, then on the 127.2% Fibonacci extension degree at $62.75. In reality, DOT might finally hit $80 if all pans out effectively. These ranges should be fastidiously watched within the coming days.