It has been comparatively troublesome for the market to give attention to developments within the crypto-space, moderately than on worth hypothesis. Nevertheless, this has not hindered networks resembling Polkadot from charging full pace forward, in the direction of their WEB3 imaginative and prescient. In reality, a latest replace highlighted a busy interval for the community so, right here’s what we will count on.
Polkadot has simply confirmed the launch of its subsequent parachain lease auctions. The announcement additionally confirmed that a number of governance occasions are scheduled in August. These occasions, mixed, would possibly increase the demand for DOT. This, due to the lock-up durations related to governance and parachain auctions.
The subsequent parachain lease public sale will start right this moment at block 11_473_600. https://t.co/hyZxkUHOXw
— Invoice Laboon | W3F (@BillLaboon) August 5, 2022
So far as the DOT’s worth motion is worried, the cryptocurrency’s buying and selling volumes have hiked considerably. It’s now among the many high 10 cryptos by buying and selling quantity, in line with WhaleStats.
Peep the highest 100 whales right here: https://t.co/f4ZJg8SIWe
— WhaleStats – the highest 1000 BSC richlist (@WhaleStatsBSC) August 6, 2022
Now, it’s unclear whether or not increased volumes are immediately linked to the parachain lease auctions announcement. The underlying mechanism requires tasks competing for parachain slots to carry a substantial quantity of DOT to have a good probability at profitable the parachains.
What do the charts say?
DOT registered an uptick of >9% this week. This upside resulted in a retest of its short-term resistance line close to the $9-price stage.
Though the upside has been lower brief after the resistance line retest, the ensuing draw back was restricted. Buyers would possibly choose to carry on to their DOT, particularly in mild of the scheduled developments in August. One other chance is that DOT’s wholesome demand close to its press time stage is likely to be canceling out a lot of the promoting strain.
A bearish pullback may be anticipated after the resistance retest. Other than low bearish strain, DOT’s weighted sentiment pointed to the chance of extra upside. In reality, the slight pullback had already pushed the weighted sentiment again into damaging territory (-0.52) at press time.
Moreover, Polkadot’s developer exercise contributors rely has elevated notably for the reason that begin of August. This has been in keeping with DOT’s deliberate developments for the month. It is a confidence increase, particularly for long-term DOT buyers.
Polkadot’s August schedule is wholesome for the community and for DOT’s worth motion. It would encourage favorable investor sentiment however then, the end result may also deal with prevailing market forces.