Crypto NewsPolkadot (DOT)

DOT price analysis: launch of Parachains in the Polkadot network

the Blockchain-Interoperability has increased following the introduction of the much touted parachains in the Polkadot (DOT)-Network received a significant boost, which enables a much higher scalability for projects. At the time of writing, DOT / USD trading at around $ 24.54.

This is what awaits you in this article

More about Polkadot Parachains

The first giveParachainAuctions have been completed so far and run individual networks or parachains in parallel to help developers realize their vision of a harmonized, interoperable ecosystem. Acala, Moonbeam, Parallel Finance, Astar and Clover are the first five Parachains to go live on the Polkadot Network and have applications for DeFi, Offer investments and loans.

Parachain’s launch comes after five years of intense development by the team behind the blockchain, which leaves the winning projects in the auction leasing slots on the network’s relay chain for a period of 96 weeks. Polkadot’s Relay Chain will coordinate consensus and communication between the various parachains.

Ethereum‘s Co-Founder and Polkadot Founder Gavin Wood notes, “The Parachain model was developed with the belief that the future of Web 3.0 will have many different types of blockchains working together. Just as the current version of the Internet serves different needs, blockchains must be able to provide a variety of services. Parachains solve that. “

Additional fundamental developments that affect DOT. can affect

In more encouraging news that may give investors more confidence in the DOT token, the smart contract layer, which supports the Polkadot blockchain framework, Gear Technologies has successfully closed a $ 12 million financing round. In the Blockchange-led round, the initiative received investments from leading VCs including Three Arrows Capital, Lemniscap, executives from Web3 Foundation and Parity Technologies, and even Polkadot founder Gavin Wood.

However, those strong fundamentals were unable to match that DOT . Lending a lot of strength to a coin that continues to trade weakly amid bearish sentiment in the broader crypto market. After they after Market capitalization ousted from the top 10 list of cryptos, institutional investors also withdrew $ 2.5 million from Polkadot-related funds last week, adding further pressure on the country during the ongoing defeat Cryptocurrency exercised.

DOT / USD technical analysis

If we look at the DOT / USD 4 hour chart, we can find bearish bias on almost all moving averages. However, the leading indicators MACD and Momentum also point to a certain buying interest on the part of investors.

DOT / USD

The price of Polkadot is holding below the pivot point at $ 26.21 but above the immediate support at $ 22.58. Let’s see if the news of the Parachains launch can bring more buyers into the market to take DOT past the pivot point.

Source: Crypto News Deutsch

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