- DOT token to catch its breath after being rejected from the 200 EMA on the daily chart
- Facebook to launch a stable coin based blockchain Diem that will be connected to the Polkadot Eco-system
- The press time price of DOT/USDT is $20.71 established on the back of a 0.6% decline in the past 24 hours
DOT Price to correct as 200 EMA disrupts the rally
DOT Token witnessed one of the largest spike in price owing to the recovery phase from July 22nd. The staged rally of 98% gained all the more momentum once the price reclaimed the support cushion of $17. A re-inspection of that support level was accompanied by the recuperation of new buyers. This move led to the violation of the macro Descending Channel.
However, the hindrance of the 200 EMA resulted in the bulls losing steam, and the price subsequently retraced by 7.4%. Presently belittled by the overhead resistance of $21, DOT price is amid a minor pullback, that will be followed by a re-test of the descending trend line. This scenario represents the possibility of another 8% decline in price and a bounceback from the support of $19.
In the event of further decline, the bears can plunge the price to $17 and cause an additional 9% retracement. Nonetheless, the worst-case scenario seems extremely unlikely owing to the impending bullish crossover between the 20 and the 50 EMA.
Presently, a brief inspection of the daily chart highlights that the downside is only limited to $19. A bounceback from the support cushion of $19 will re-establish confidence amongst the bulls. They will further attempt the capture the next resistance of $23, an elevation of 14.5% from the current price level.
While the overall price action demonstrates that the DOT token has gotten out of the woods, the oscillators are in favor of a minor setback. The Daily RSI has entered the oversold territory after May’s flash crash and has also dictated bearish divergence. The Stochastic RSI, on the other hand, awaits an impending bearish crossover.
Facebook native’s token Diem to set its hub on Polkadot Blockchain
If you are wondering what happened to Facebook launching its native asset Libra, then you must know that the project name has now changed to Diem. On account of regulatory resistance, the network had no choice but to quietly re-name the project.
Facebook is now concentrating on the launch of a pilot stable coin by the end of this year. There are several reasons to support the possibility of Diem Currency becoming the most reliable stable coin.
The most impressive statistic is the fact that the active audience of Facebook, stands at 3 Billion active users monthly. Keeping in mind, that Facebook has acquired both Whatsapp and Instagram, the stablecoin will integrate with the three most widely popular applications.
Polkadot, the fast, cheap, scalable, interoperable blockchain it is, has successfully established the ground as the most talked-about crypto asset of 2021. The launch of the para chain slot auctions suggests that the network is well suited for bigger projects. Facebook, attempts to seize this opportunity by bringing Diem compatible apps to the Polkadot Eco-system.
With the help of the Pontem network, the developers will now write apps in Move (Diem’s programming language), which will later be deployed on the Polkadot parathread. Pontem serves to be Diem’s Canary network, like how Kusama serves to be Polkadot’s canary network.
What does this mean for Polkadot?
The news of Polkadot and Diem branding is by far the most fundamentally strong catalyst. The fact that Diem has chosen Polkadot’s parathread goes to show how strong the ecosystem really is. Needless to say, the success of Diem will expose Polkadot to an addressable market of nearly 3 Billion users.
SUPPORT : $19, $17
RESISTANCE : $21, $23