Polkadot (DOT) Jumps and Verifies Long-Term Support

The price of Polkadot (DOT) is at a critical point in its long-term pattern. However, a rise above this point might serve as the trigger for a large bullish pattern reversal.

Polkadot Moving In A Parallel Channel 

Since DOT hit an ATH price of $55.09 in November, it has fallen into a sinking parallel channel. The decline has thus far resulted in a low of $6 in July.

The bounce and development of a lengthy lower wick that followed supported the channel’s support line and the $5.60 linear support region. Meanwhile, the token’s price is currently seeking to retake the channel’s midpoint.

Moreover, corrective trends often occur in parallel channels. This raises the possibility of a future breakout, even more when coupled with the reclaiming of the channel’s midsection.

A breakthrough above the channel, which has been in the position since the crypto’s record high, would signal the end of the correction.

DOT/USD Trading Chart Source: TradingView

Meanwhile, a crypto trader on Twitter, @Incomesharks, predicted that the price of the token could climb towards $16 and eventually $23. However, the price of the token would have to break away from the channel’s middle. Afterwards, it could climb to these targets.

Polkadot Announces The Development Of Parachains 

On July 27th, DOT made a breakout to create a sinking resistance line on the daily chart. After that, it dropped, verifying $7.6 as the minor horizontal support area. 

A rising support line which has been in the position since the declines in July also occurred in the region. As DOT has already produced a string of higher lows, the uptrend structure is thus still in place. 

Therefore, there is still a chance for a long-term escape toward the previously mentioned targets. Unfortunately, if the token should fall below the July 13th low, this would contradict the bullish structure, and the price could fall lower.

The project team at Polkadot said on August 23rd via Twitter that ParityTech is creating a series of brand-new blockchains that will serve as “common good parachains”. It is important to note that Polkadot’s governance may only “assign parachain slots” to chains that it determines are essential to the overall network. 

All of the chosen chains avoid the auction procedure. According to the Twitter thread, Fellowship is one parachain that will be devoted to collectives. 

This chain would provide a significant element of Web3’s capacity to organize and function as a group without depending on other parties (such as lawyers and judges). This is a major part of Web3.