- Polkadot price is showing a bullish reaction against the 70.5% Fibonacci retracement level at $ 25.06.
- Crowdloan facility starts in DOT and KSM networks
- A collapse of the USD 23.25 support level will invalidate the bullish thesis.
Polkadot price saw a massive downturn yesterday as it failed to close above a critical resistance level. This development came when the general cryptocurrency market needed a correction.
Going forward, investors can expect the DOT to rebound above the supply line mentioned above and hit a new swing high.
Crowdloan facility reaches DOT and KSM
Polkadot recently saw a vote to increase the number of validators for its blockchain from 300 to 399 but failed to garner enough votes to be passed. However, this week the staking rate at Polkadot has increased 2% from 59.7% to around 61.2%, indicating increased interest.
Interestingly, despite having a higher payout percentage, the staking rate for the Kusama network is relatively lower than that of DOT.
Polkadot offers stakers an annual reward of 13.47%, while Kusama offers an annual interest rate of 14.74%.
Another important development is the “parachains slot auctions”, a method whereby projects that want to receive a parachain slot have to participate in auctions by blocking their DOT and KSM tokens via the crowdloan mechanism.
The projects that do not win the auction receive their blocked tokens at runtime.
The announcement details,
Technically, the DOT or KSM of the auction for the parachain are assigned by the chain’s runtime logic via the extrinsic “crowdloan.contribute”. This is a special type of transaction that allows token holders to contribute to a crowdloan without having to transfer or give up the custody of their tokens to third parties.
The first batch of crowloans, although on the Kusama network, has already started. The next auctions start on September 1st.
Polkadot price starts a new upward trend
The polkadot price fell about 15% as it fell from $ 28.21 to $ 24.10 on August 24. This downturn stabilized above the 70.5% Fibonacci retracement level at $ 25.06 and is already seeing a bullish reaction from it.
A continuation of this uptrend will result in a retest of the 50% Fibonacci retracement level at $ 26.32. If buying pressure causes DOT to close a crucial 4 hour candlestick above it, it will confirm the start of a new uptrend.
In such a case, the Polkadot price is aimed at the $ 30 psychological level. Flip this barrier into support opens the way to retest $ 31.38.
DOT / USDT 4 hour chart
On the flip side, a drop in the 70.5% Fibonacci retracement level at $ 25.06 will indicate easing buying pressure. If selling pressure pushes Polkadot price below the $ 24.08 support level, it opens the way to retest the range lows at $ 23.25.
However, a breakdown of $ 23.25 will invalidate the bullish thesis and trigger a possible crash to $ 20.61.