- Polkadot price loses momentum at $6.50 after sprouting from support at $6.10.
- KILT Protocol parachain successfully makes the first migration from a test environment to Polkadot.
- DOT price is on the cusp of validating a heads-and-shoulders pattern for an extended southbound move.
Polkadot price is doddering at $6.33 moments after snapping out of a northbound move from its support at $6.10. An intense seller concentration zone at $6.50 prevented bulls from achieving their potential, with upside targets at $6.80, $7.20 and $8.00 untested. Buyers will have an uphill battle defending DOT’s primary support area at $6.10 if an H&S (heads-and-shoulders) pattern gets validated on the four-hour chart.
Polkadot announces first parachain migration
Polkadot has achieved a historical Web3 milestone after migrating the KILT Protocol, which is blockchain protocol used for creating, issuing and verifying digital identities. KILT was migrated from Polkadot’s test and development environment, the Kusama Network, to its relay chain, the backbone of the Polkadot ecosystem. The development team said via a blog post published on October 4 that “the migration also represents the first instance of a parachain taking the upgrade path from Kusama to Polkadot.”
The historical development will precede other Web3 projects looking for an avenue to stress-test their technology in real-time. Polkadot’s idea is to alleviate risks associated with software upgrades, especially from one blockchain network to another.
“Happy to see KILT Protocol showing, for the first time, the live transition of an entire parachain ecosystem from one Relay Chain’s security umbrella to another. This is another demonstration of the power and flexibility of the Relay Chain model for decentralized application platforms,” says Dr. Gavin Wood, founder of Polkadot, expressing his satisfaction with the migration.
The founder of KILT Protocol, Ingo Rübe, added that this is a huge step toward decentralization. Rübe believes that the migration process was made possible by Polkadot’s technology and flexibility.
Polkadot price gives up on relief rally
Polkadot price reacted positively to the migration of the KILT Protocol from Kusuma but immediately started wiping out the accrued gains. Support expected at $6.38 – formed by the 50-day Simple Moving Average (SMA) red, and the 100-day SMA (blue) failed to stop DOT’s retracement, which could revisit the buyer congestion at $6.10.
DOT/USD four-hour chart
An heads-and-shoulders (H&S) pattern is also nearing maturity on the same four-hour chart. However, short sellers should consider waiting till Polkadot price slides below the $6.10 neckline at the H&S’s lows to confirm a breakout. Possible take-profit targets to the downside are the demand areas at $6.10, $5.80 and $5.40.
Odds will continue favoring bears, as shown by the DMI (Direction Movement Index). Nevertheless, the ongoing downward movement could be stopped if bulls move to reclaim the broken support at $6.38 while not losing focus on higher price levels at $6.80, $7.20 and $8.00.
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.