Bitgreen sweeps Polkadot's 29th parachain auction ahead of a 14% tumble in DOT price

  • Polkadot price could quickly validate a 14% falling triangle breakout to $5.30.
  • Bitgreen, a platform linking Web3 and DeFi, wins Polkadot’s 29th parachain auction.
  • The prevailing oversold conditions may invalidate the move to $5.30.

Polkadot price’s time in the murky waters of a bear market run seems far from over. If a falling triangle pattern matures, the parachain token risks plunging 14% from the breakout point. For now, support at $6.15 is moderating the building selling pressure. However, most technical indicators hint at a continuing downtrend.

Bitgree tops Polkadot 29th parachain auction

Bitgreen was announced the winner of the highly contested 29th Polkadot parachain auction. Parachains are used to connect to Polkadot blockchain by leasing a slot on its Relay Chain. Crypto projects that clinch the spot get up to 96 weeks of support, with an option to renew the lease.

Action winners are required to lock up a bond in DOT for the duration of the lease. The DOT tokens locked on the Polkadot blockchain are leased at the end of the lease – as it is viewed as the opportunity cost to use the assets for other engagements.

Bitgreen is an upcoming crypto project building a permissionless blockchain. The idea is to bring DeFi (decentralized finance) and Web3 under one roof while focusing “on green projects, renewable energy tech, microfinance & impact investing.”

DOT price is preparing for another selloff

Polkadot price is testing the strength of the buyer congestion zone at $6.15 after failing to crack the falling triangle’s hypotenuse resistance. The 50-day SMA (Simple Moving Average), red, was in line to provide support at $6.40, but it did little to prevent DOT price from revisiting the x-axis support.

A falling triangle is a highly bearish technical pattern often prolongs an asset’s preceding trend. In other words, Polkadot price will tumble 14% from the breakout point (a-axis). Traders must wait for the price to confirm movement below the support (a-axis) before activating their short orders. The breakout target is equal to the distance between the highest and lowest points of the falling triangle.

DOT/USD daily chart

DOT/USD daily chart

An immediate rebound from the axis support at $6.15 cannot be ruled out, especially with Polkadot price wallowing in oversold conditions. Insight from the Stochastic oscillator cements the bears’ influence on DOT. However, the index is expected to regain ground, which might call on buyers to join the market and take advantage of a potential swing to $7.10 or even to $8.00, respectively.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis