The Polkadot ecosystem is all set to begin its new era as the Polkadot parachain auctions are going to start from tomorrow, Thursday, November 11.
As Crypto Economy reported, the Polkadot team announced the schedule in the previous month of October. According to motion 118 passed by the Polkadot Council in October, the auctions for the first batch of five parachains will begin on Thursday, November 11.
To get things started, on November 5, a public referendum 41 was passed to deploy the Shell parachain on Polkadot, which is now producing blocks on the blockchain. The Shell is only a limited-capability parachain and only accepts messages from the Realy Chain to upgrade itself. On that same day, Polkadot’s No.42 referendum was voted and the Parachain Slot Auction Crowdloan module was launched.
The participating teams have opened their crowdloans for users to participate in these auctions. According to a blog post, 9 teams will fight in the first auction to become the first real-world parachain on Polkadot.
These 9 teams include the DeFi hub of Polkadot Acala, Shiden Network’s Polkadot chain Astar Network, Moonbeam, Decentralized Identity Aggregation protocol Litentry, Manta Network, Darwinia Network, Crust Network, Parallel Finance, and SubDAO.
Almost all these have opened their crowdloan platforms. Acala has recently announced that over 55,000 community members have already contributed more than 10 million $DOT towards Acala’s bid in the first Polkadot parachain slot auction. Parallel Finance has also announced that after 72 hours of its crowdloan launch, 20K contributors have contributed $100 million.
On November 11, the first auction for the first batch of five parachain will begin with 1 new auction each week. The second batch will have 6 auctions with 1 new auction every two weeks.
The winning parachain will be not connected to Realy Chain immediately that was the case for the first 11 parachain auctions for Kusama. Instead, winning parachains of each batch will be onboarded at once at the start of a leasing period.
Auctions for the first batch of 5 parachains will end on December 16th and winners will be onboarded on December 17th, at the start of lease period 6 which will of 96 weeks from December 17th, 2021 to October 20th, 2023.
Meanwhile, parachain auctions for Polkadot’s canary network Kusama are in full swing. On Monday, November 8, Kusama concluded its 13th parachain auction and the Metaverse portal of Polkadot and Kusama Bit.Country is now the 14th parachain on Kusama.
- Polkadot price has been in a structural uptrend since the beginning of October.
- DOT price is undergoing some short-term profit-taking around $50.76 but has refrained from selling off.
- Polkadot price rally still holds 40% of possible additional gains.
Since July, Polkadot (DOT) has been in a very solid uptrend and is forming a consistent pattern at times when bulls are taking a profit. At the moment, Polkadot price is again in a similar situation with a repeating pattern that keeps price action elevated and avoids any heavy corrections. With this repetition, the Polkadot price rally could offer another 40% of gains towards $70.
Polkadot price pennant offers a window of opportunity for bulls
Polkadot price is blowing off some steam after another leg higher and hitting $56.15 which is a new high for the altcoin. With that move, the Relative Strength Index (RSI) has shot above 70 into overbought territory, triggering an outflow of bulls who have started cashing in on their profits. DOT price action, however, is very much contained in its correction and moving around the level of a previous historical high made on May 15 at $50.76.
With that move, DOT price is forming a pennant, which offers bulls a good opportunity to re-enter with long positions on the ascending side of the technical setup. In the meantime, the RSI has the opportunity to cool down a bit and drift back towards more moderate levels around 50. Bulls will gladly pick up DOT price again as more upside potential is now present in the rally.
DOT/USD daily chart
DOT price still has some room to go before completing the pennant, as we saw in the period around September and the late end of August, where again two pennants were formed. Each time a rapid breakout followed that held around 10% to 20% of profits. With the current tailwinds in cryptocurrencies, expect this pattern to repeat two more times before DOT price hits $70, near the monthly R3 resistance level.
In case the pennant breaks to the downside, expect a short-term nose dive in Polkadot price action towards $45.22, which will be the first level of support. If that does not hold, the price could fall further to around $40, where the monthly pivot and the 55-day Simple Moving Average (SMA) come in and are likely to provide bullish supporting elements. With that move, the RSI will probably enter oversold territory, attracting even more bulls towards DOT price action.