- Currently, the price is growing due to parachain auctions.
- Polkadot is only accessible to those who win the auctions.
The bitcoin market was hopeful for most of October, but it has subsequently dropped. So let’s see what’s going on with Polkadot and where it’s heading. The next Polkadot parachain auction has fueled this positive trend. Polkadot will perform its first parachain auctions on Monday. Polkadot is now trading at $52.84.
Contrary to common belief, Polkadot (DOT) is experiencing price discovery after the highly anticipated parachain auctions. Popular crypto analyst Benjamin Cowen thinks DOT will likely break out of a wide range it has been trapped in for much of 2021.
Parachain Auctions
Currently, the price is growing due to parachain auctions. Many projects want to be included on Polkadot. Unlike Ethereum, where every ERC-20 token may be instantaneously generated, Polkadot needs an auction. Polkadot is only accessible to those who win the auctions.
Cowen looks at DOT’s value compared to Bitcoin and Ethereum to see how far it may go in this cycle. Bitcoin’s value is still not at an all-time high. DOT would need to rise another 24% or 25% from present levels to hit a new all-time high versus Bitcoin. If Bitcoin stayed steady, Polkadot would be approximately $62.
To hit an all-time high for Ethereum, DOT/valuation ETH must gain 117 to 120 percent from its present position. To hit a new DOT/ETH high, there is a need to hit $111 for a constant ETH that means Polkadot.
Cowen thinks DOT will stay strong as long as Bitcoin is above the bull market support zone of the 21-week EMA and the 20-week SMA (SMA). According to CoinMarketCap, the Polkadot (DOT) price today is $51.63 USD with a 24-hour trading volume of $1,905,398,237 USD.
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