Following the publication of the Polkadot roadmap, bullish expectations around DOT, the native token of this chain, increased, recently the price marked a new all-time high, and at the moment there is nothing to tell us that the bulls want to give up the control.
At the time of writing, DOT is trading at $ 39.49, accumulating a loss of 0.63% in the last 24 hours, but maintaining a gain of 39.4% in the last 7 days.
Here is an analysis of this cryptocurrency, seeking to discover what has been happening, and what probability exists that it will maintain the strong upward trend it brings.
Hype around Polkadot takes it to a new high
Last Monday the Polkadot development team published the roadmap for the launch of the expected parachains and slot auctions, which should be completing the protocol.
We are currently in Rococó, the first of 3 phases, during which the developers will test the mechanisms to communicate between different parachains.
According to data from VORTECS, a CoinTelegraph Markets Pro product, there was an increase in bullish expectations for DOT on February 16, just before the price rally started.
VORTECS compares current and historical conditions, combining data including market sentiment, trade volume, recent price action, and cryptocurrency-related Twitter activity.
The bullish momentum continues to develop mainly in anticipation of the next parachains auctions. These will allow the Polkadot network to interact with others such as Bitcoin or Ethereum.
For this, a mechanism is used that transfers data between different chains, which is called “cross-chain message passing-lite”. The mechanism is in the testing phase. Once the audit and voting approval is complete, the slot auction to add parachains will be a reality.
Totally bullish trend
When we look at the weekly Polkadot chart we note that the recent high is a consequence of a strong medium-term uptrend.
Currently a push for this trend is under development. Despite the fact that the movement is quite widespread, too much exhaustion is not yet observed.
Even starting a fall in the next hours / days, it will be nothing more than a healthy correction before continuing to rise.
Polkadot marks new high. Weekly chart of the price of DOT vs USDT. Source: TradingView.
On the DOT vs USDT daily time frame we see a short-term momentum that started last Friday. A correction could well come in the next few hours, but I repeat it will be a search for demand to resume the previous trend.
In the short term, there is a bit of exhaustion, the product of logical profit taking when reaching a new all-time high, but as long as Polkadot does not break immediate supports with great force, there is no reason to think about big falls.
Daily price chart of DOT vs USDT. Source: TradingView.
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