It has been comparatively troublesome for the market to give attention to developments within the crypto-space, slightly than on worth hypothesis. Nonetheless, this has not hindered networks resembling Polkadot from charging full pace forward, in direction of their WEB3 imaginative and prescient. Actually, a latest replace highlighted a busy interval for the community so, right here’s what we are able to anticipate.
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, may increase the demand for DOT. This, due to the lock-up intervals related to governance and parachain auctions.
THREAD – @Polkadot #PolkadotDigest 5 Aug 2022#Polkadot Information
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 anxious, the cryptocurrency’s buying and selling volumes have hiked considerably. It’s now among the many high 10 cryptos by buying and selling quantity, based on WhaleStats.
JUST IN: $DOT @Polkadot now on high 10 by buying and selling quantity amongst 500 greatest #BSC whales within the final 24hrs 🐳
Peep the highest 100 whales right here: https://t.co/f4ZJg8SIWe
(and hodl $BBW to see knowledge for the highest 500!)#DOT #whalestats #babywhale #BBW pic.twitter.com/2axQIXadp2
— 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 an honest likelihood at successful 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 degree.
Supply: TradingView
Though the upside has been minimize brief after the resistance line retest, the ensuing draw back was restricted. Buyers may decide 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 degree could be canceling out a lot of the promoting strain.
A bearish pullback could be anticipated after the resistance retest. Except for low bearish strain, DOT’s weighted sentiment pointed to the probability of extra upside. Actually, the slight pullback had already pushed the weighted sentiment again into adverse territory (-0.52) at press time.
Supply: Santiment
Moreover, Polkadot’s developer exercise contributors depend has elevated notably for the reason that begin of August. This has been in keeping with DOT’s deliberate developments for the month. This can be a confidence increase, particularly for long-term DOT traders.
Supply: Santiment
Conclusion
Polkadot’s August schedule is wholesome for the community and for DOT’s worth motion. It’d encourage favorable investor sentiment however then, the result will even deal with prevailing market forces.