DOT must exceed these milestones by $ 80. to reach

After 3 months of continuous profits with a few pauses, DOT finally hit its ATH at $ 53.04 before the first Parachain auctions took place. The Parachain auction was developed over the last year and is slated to start on November 4th. The euphoria surrounding the event appears to be the main driver that drove the altcoin rally to an all-time high. However, there are many other reasons that support the rise of DOT.

While this phase is designed to help DOT achieve a new ATH, there is still plenty of room for growth in terms of both new innovation and pricing. The article therefore analyzes how the altcoin in 8th place can develop in the future.

DOT 4-Hour Price Chart | Source: Tradingview

Bright November

Parachain auctions allow DOT developers to register their projects on Parachain (an individual blockchain within the Polkadot ecosystem) and receive crowdfunding for projects approved by the Polkadot Council. This highly anticipated event will run throughout November and is set to secure a DOT rally in the coming weeks.

Additionally, DOT’s price has hit ATH amidst the excitement of the retail audience. In particular, the retail FOMO played an important role in the high-volume DOT rally. Accordingly, DOT’s market capitalization dominance increased by almost 50%.

DOT market capitalization (green) | The source: Messari

It seems that DOT is gaining high social volume as well as very positive psychosocial values. In addition to high spot volumes, the futures and perpetuals markets are also showing glimmers of hope.

In fact, the open interest (OI) on the futures market has increased by 18.51% and the perpetual market by 14.7%. In addition, November 1st saw the highest number of short liquidations since October 13th.

OI DOT numbers | The source: Coinlyze

Active network activity promotes development

The number of active addresses rose nearly 40% on Nov. 1 as the DOT price neared ATH, suggesting that attendees flocked to the network before Parachain launched.

Number of active addresses (green) | Source: Messari

However, aside from the positive on-chain activity, the reason for the upward move could be some notable development activity. The indicator remained at an all-time low until October 30, when it finally broke out of this pessimistic trend.

Development activities (green) and the percentage of whales in the total stablecoin supply with more than $ 5 million (pink) | The source: Sanbase

In addition to the good activity, whale accumulation also hit ATH as a percentage of total whale stablecoin supply of over $ 5 million is held at ATH.

However, with DOT price hitting its ATH and facing some minor consolidation at the time of writing, a drop below $ 47 would create a good buy zone.

For now, however, the next target for DOT could be $ 55.6, followed by the 127.2% Fib expansion at $ 62.75. In fact, the altcoin could eventually reach $ 80 if all goes well. It is therefore necessary to carefully monitor these values ​​in the coming days.

DOT ready to take off

Yesterday, trader Pentoshi noted that DOT’s recent price move ahead of the Parachain auction made him particularly optimistic.

“The Parachain auctions are only 9 days away and the diagram looks like this. It is possible to hit an incredibly high price and then the USD pair discovers the price. Concentrate on next week. “

The source: Pentoshi

Dealers too suspect DOT will eventually earn a spot in the top 5 cryptocurrencies by market capitalization, if only for a short time.

However, Pentoshi is not entirely optimistic about the overall altcoin market. He is ready to buy some altcoins on a sharp decline should there be another shake as Bitcoin begins to rise, attracting capital from the rest of the room.

“I have placed around -20% to -30% bids on altcoins. It’s been a while since the price dropped noticeably. I’m not sure if the wild ride will continue, but traditionally in strong trends, price fluctuations and market shakeout. OLDThere hasn’t been a time since BTC hit $ 40,000. “

On Bitcoin, the trader said the recent sideways movement of the world’s leading cryptocurrency may be coming to an end and giving way to another rally.

“Any pullback that brings BTC to $ 62,500 is a great bidding zone to buy. Looks like the consolidation is over and ready for the trend to return. “

The source: Pentoshi

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

At home at home

According to AZCoin News

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page