Polkadot (DOT) has emerged as a popular multi-chain framework that allows different blockchain networks to transfer messages in a trust-free manner, sharing some unique aspects while also pooling their security.
Now, the platform is developing greatly and is entering quite an interesting phase. The “PARACHAINS” auctions are set to begin on November 11 and the event is expected to be a milestone that Gavin Wood aspired to attain for the interconnected blockchain architecture.
Support and Resistance Zones
The event is showing positive effects on the price of DOT, rising from USD$33 support zone to USD$46 in a matter of just a few days. Nonetheless, the resistance zone being tested by the price will determine the incoming price action.
Generally speaking, “Support” and “Resistance” form the primary basis for technical analysis of price action. The technique identifies different price levels where the price of the cryptocurrency has historically reacted either by slowing down or reversing.
The price behavior at these levels gives an idea of how prices will move in the future. Both support and resistance zones become detectable turning points, psychological levels, or areas of congestion. The higher the time frame, the more relevant are the levels.
In the case of DOT, the blockchain world is waiting for a daily and weekly breakout of USD 49/50 with a closure above this level to clear the resistance zone. This should further increase the price action in the coming weeks and will pique the interest of people in DOT thanks to the auctions.
The best place to collect DOT was seen at the USD 28/33 range. However, patience and caution are required to limit the level of risk and increase RR. The world can only hope to clear the USD 49/50 level for the bullish trend to sustain.