Polkadot (DOT) settles near two-month high on parachain auction FOMO

  • Polkadot (DOT/USDT) reaches post-May crash price levels.
  • Kusama announces the schedule for next parachain auctions.
  • DOT is about to form a golden cross on the daily chart but in overbought territory.

JAIPUR (Coinchapter.com) — Polkadot’s DOT topped post-May crash price levels in the recent upside move that came on the back of Kusama’s upcoming parachain auction announcement.

The DOT/USDT rate resumed its uptrend on Wednesday after a brief bearish takeover attempt. Prices achieved a near 2-month high after rising 17% from the local bottom at $22.5. Bulls assessed the Polkadot underpinning token’s rally since July 20 and the Kusama parachain auction FOMO to place massive buy bids for the near term.

Related: DOT price hits one month high on Polkadot blockchain growth hopes

Kusama’s Parachain Auctions

Kusama is essentially an experimental platform for blockchain projects that seek to leverage Polkadot’s Canary Network for building. And later move to Polkadot.

The platform shares its codebase with Polkadot and is the brainchild of Ethereum co-founder and ex-CTO Dr. Gavin Wood. Substrate is Kusama’s software development framework that Kusama-native developers can use for creating parachains.

Kusama stands for cross-chain communication and interoperability in blockchains. Parachains fulfill the idea of interconnectivity in Kusama by eliminating siloes across smart contract development platforms.

Permissionless auctions guarantee developers a spot in the Kusama ecosystem. Project creators need to avail parachain slots on the main Kusama blockchain (the Relay Chain) to build. After securing a parachain slot, developers can use it to test and optimize their project ideas before launching the final output on Polkadot.

The first round of parachain auctions (5 of them) occurred between June 15 and July 20. Kusama’s team recently announced the schedule for the next five auctions.

Auctions will be carried out simultaneously within two days of the initial bidding. A five-day ending period will follow the same.

Next Kusama Polkadot slot auction schedule.
Next Kusama Polkadot slot auction schedule. Source: Polkadot blog

Polkadot bulls went all out on this crucial fundamental development and the upcoming golden cross formation on DOT/USDT’s daily chart.

Related: Polkadot’s DOT among top 5 held crypto-assets across hedge funds, research shows

DOT And Golden Cross

The 50-day exponential moving average (50-EMA) and 200-day exponential moving average (200-EMA) waves look to intersect on DOT/USDT’s daily chart. If the bullish pressure continues, the intersection could happen this month or in the first week of September.

DOT prices could push further up towards $38, but overbought concerns persist. The Polkadot token has been trending above the relative strength index (RSI) reading of 50 since July 28. August saw RSI cross beyond 70 creating strong scenarios for bearish reversals.

Impending golden cross formation on DOT/USDT 1-D chart.
Impending golden cross formation on DOT/USDT 1-D chart. Source: DOTUSDT on TradingView.com

However, the fundamentals have the upper hand in deciding DOT/USDT’s future course. If a retracement were to occur at all, one should keep an eye on a drop to $20.9 (200-EMA) and $18.9 (50-EMA).

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