- Deutsche Telekom’s T-Systems purchased DOT tokens while providing Polkadot with staking infrastructure.
- DOT prices attempt to move above its six-week descending trendline.
NEW DELHI (CoinChapter.com) — Polkadot (DOT), a blockchain platform for distributed computing, is increasing fundamentals to support a bull run, but its native token DOT continues to struggle.
Deutsche Telekom AG, Europe’s largest telecommunications firm, has invested an unknown amount in Polkadot. The firm’s digital innovation subsidiary, T-Systems Multimedia Solutions, bought a “significant” number of Polkadot’s native token, DOT.
The latest foray into crypto markets is not the telecom firm’s first. Deutsche Telekom already supports Proof-of-Stake (PoS) consensus mechanisms of Chainlink, Dapper Labs’ Flow, and Celo. However, the firm’s interest in Polkadot has moved beyond providing infrastructure.
T-Systems would help provide node-running infrastructure to users staking on the Polkadot network, apart from its investment via token purchase.
Additionally, T-Systems would run several private and public validators for the Polkadot network. Investing in DOT also allows Deutsche Telekom to participate in governance decisions.
In other news, Gear Technologies, a smart contract platform on the Polkadot blockchain, recently raised $12 million in a private investment round. The funding was led by Blockchange, along with Three Arrows Capital, Lemniscap, and several VCs.
Moreover, both these developments come at the heels of the launch of Parachains on the Polkadot network. Parachains are diverse Layer-1 (L1) blockchains that run parallel to Polkadot, connected to the Polkadot relay chain. The relay chain provides security to the parachain network but does not support application functionality.
Initially, Polkadot would offer support for 100 parachains, allocated for 96 weeks through auctions.
Polkadot Price Charts
Polkadot prices are struggling against the token’s six-week descending trendline. In the 47 days since charting a new ATH on Nov 4, DOT prices have fallen over 58%, following a descending resistance. However, the Polkadot token jumped 10% on Tuesday, challenging immediate resistance at $25.76.
Further uptrend would see DOT prices reach $27.5, before prices either consolidate or pull back. However, marketwide buying sentiment could push prices to $29, where the 26-Day EMA and 200-Day MA trendlines form a resistance confluence.
On the other hand, $23 acts as support for the Polkadot token. At present, DOT is near prices last seen in late Aug. Further downside movement would take Polkadot prices to $21 before DOT rebounds. Meanwhile, momentum oscillator MACD painted a bullish crossover on Dec 18.
A bullish crossover occurs when the MACD line (difference between 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD). However, the bullish crossover comes at a downtrend, which indicates a divergence. Although it might indicate a reversal, a bullish divergence isn’t necessarily a perfect indicator of a reversal.
Bars on the MACD histogram are expanding, indicating the momentum is gaining bullishness despite the downwards price action.
The relative strength index for DOT is currently near the oversold region, but is technically neutral, clocking 35.88 on the daily charts.
At the time of writing, DOT was trading at $25.27, up 4.9% on the day.