Polkadot logs 13% intraday rally amid Kusama’s 11th parachain auction

Polkadot logs 13% intraday rally amid Kusama's 11th parachain auction
“Yayoi Kusama, Parc Villette Paris” by austinevan is licensed under CC BY 2.0
  • Polkadot resumed the uptrend by registering fresh gains on Thursday.
  • Kusama’s 11th parachain auction is the probable reason behind the pump.
  • Sellers began booking profits, but DOT can go much higher.

KOLKATA (Coinchapter.com) – Bulls resumed DOT’s Uptober rally by pumping the DOT/USDT pair up by 13% as 11th parachain auctions began on Polkadot’s ‘canary network,’ Kusama. DOT prices rose from lows near $31 to the sessional high at $35.42.

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

11th Kusama Parachain Auction

The 11th leg of the parachain auctions went live on Kusama on Wednesday.

Kusama is essentially an experimental platform for blockchain projects that would later move to Polkadot. And parachain auctions help select prospective blockchain projects that can leverage Kusama’s computing power to develop and test their applications.

Both Kusama and Polkadot platforms are the creations of Ethereum co-founder and ex-CTO Dr. Gavin Wood. Substrate is the software development framework that Kusama and Polkadot-native developers can use for creating parachains.

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 parachain auctions occurred between June 15 and July 20, with the tenth concluding on September 29.

DOT/USDT Technical Setup

The DOT/USDT pair broke out of its Ascending Triangle set up in the latest pump. But profit-takers surprised bulls by selling the top near $35.50. Bears will try pushing down the pair towards the $30 support but possibly find renewed bullish strength.

Related: Polkadot plows on despite market instability; New ATH ahead for DOT?

Relative strength index (RSI) count remains below 70 (actual number 62.79), indicating that there’s more steam left in DOT’s rally. An upshot followed every RSI dip, which led to the Polkadot token forming higher lows. In technical analysis, RSI rallying in tandem with asset prices points to bullish sentiment.

Polkadot's native token has bullish steam left in the rally
Polkadot’s native token has bullish steam left in the rally. Source: DOTUSDT on TradingView.com

Traders would have to look out for volatility-based opportunities until October 13, the ending day of the 11th round of parachain auctions. Possibilities of a correction towards $31-32 cannot be ruled out if selling pressure intensifies. Still, the drop would be followed by a brief period of consolidation and then a move to the upside.

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