invezz.com
The Polkadot (DOT/USD) price maintained its bullish rally in the overnight session as investors cheered the great Bitcoin comeback. Investors are also waiting for the important parachain auctions that kicks off in the coming month. The DOT token is trading at $43.98, which is a few points below its all-time high of $49.
DOT rally continues
Polkadot is a relatively unique blockchain project. It was started by Gavin Wood, who was also a co-founder of Ethereum. It is unique for two main reasons.
First, Polkadot relies on Kusama, another blockchain project whose token is worth more than $2 billion. All applications in Polkadot must pass through Kusama.
Second, Polkadot is unique because of its parachain technology. Before applications move to the mainnet, they must go through what is known as a parachain auction. This is a process where members of the community vote for these projects using their tokens.
Therefore, the DOT price has done relatively well in the past few days as investors wait for the upcoming parachain auctions. Analysts believe that it will be the biggest auction on record.
While it is too early to tell, there is a likelihood that a project by Acala Network will win the auction. By so doing, it will join Karura, which won the previous auction.
The Polkadot price has also rallied because of the strong cryptocurrency rally. This week, the Bitcoin price managed to rise to an all-time high of more than $66,000. As a result, the total market capitalization of all cryptocurrencies soared to more than $2.6 trillion. The Bitcoin rally happened because of the launch of the first Bitcoin futures ETF.
Polkadot price prediction
The daily chart shows that the Polkadot price has been in a strong bullish trend in the past few weeks. The coin has jumped by more than 330% from its lowest level in July. Along the way, it has formed what looks like a V-shaped pattern. This pattern also looks like a cup and handle pattern.
The DOT price is also being supported by the 25-day and 50-day moving averages. Therefore, there is a likelihood that the price will keep rising as bulls target the resistance at $50. However, a pullback is also possible as investors fade the ETF news.