The Polkdot (dot) chart technically suggests that it could reach a new record high of around $ 75 if the dot decides above its $ 41- $ 43 range.
This is according to a classic bullish reversal setup known as an inverse head and shoulder (H&S), when the price closes three sales during market consolidation.
Specifically, the pattern includes an initial sale, followed by a short-term price rally and another-deep-sell. This leads to another small correction in the opposite direction, followed by another sale that goes closer to / below the lowest level of the first sale.
The first and last sale represents the “left” and “right” shoulders, respectively, while the second sale represents the “head”. On the other hand, the level around which all short-term assemblies are at the top represents the “neckline” of the head and shoulder pattern.
Traitical analysts typically measure the maximum distance between it and the head formation to determine the H&S reverse target from neckline resistance.
Thus, it appears that Polkdot is creating a similar bullish pattern in its weekly chart, as shown below.
The maximum distance between the dot’s neckline and the bottom of the head is going to be around $ 31. Therefore, a successful bullish breakout above the neckline range of $ 41– $ 43 puts the next long-term target at around $ 75.
The parachute auction is coming up in November
The reverse H&S pattern rose nearly 30% last week to a five-month high of around $ 44. The main part of his weekly uptrend was the rise in prices across the crypto market, as well as the news of the first parachain auction of Polkadat on November 11 live.
In detail, Polcadot’s parachains are parallel, application-specific chain-child lasers connected to a single parent laser called a relay chain. Due to their parallel nature, parachains simultaneously process multiple transactions and maintain and record their data in the original database by communicating with other chains.
Related: Parachin will debut at auction after Polkdot regime vote
It comes as a break from the process of arranging transactions and processing them in order.
5 years after the first outline of the vision of a heterogeneous multichain framework in the Polkdot Whitepaper, the parachains are now ready to launch in Polkadot. Motion 118, to schedule the first auction, has passed the council and is now in a public referendum.
– Polkadot (olPolkadot) October 13, 2021
DOT, which serves as a utility token for fees, governance, inter-operability and bonding within the Polkdot ecosystem, rallied more than 2 %% after the announcement of the parachute auction.
Subsequently, Polcadot aims to introduce a cross-chain feature that will enable its relay chain to external blockchains (Bitcoin, Etherium, etc.) through special related smart contracts. Meanwhile, the project plans to launch a “built-in bridging module” that will improve the interoperability of external blockchains with Polkdot.
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