A popular crypto trader and analyst says smart contract platform Polkadot (DOT) looks primed for more rallies as the highly anticipated parachain auctions approach.
Parachain auctions involve users bidding on crypto assets to see which network will receive a parachain slot, which is a custom blockchain that confirms transactional accuracy.
The pseudonymous trader known as Pentoshi tells his 338,000 Twitter followers that DOT’s recent price action strikes him as particularly healthy just ahead of the parachain auctions.
“Parachain auctions in 9 days and the chart looks like this
Probably going to go apesh** and [then] price discovery on USD pair
Focus for next week for me.”
The trader also predicts that DOT will end up claiming a spot in the top 5 crypto assets by market cap, even if only for a short time.
Pentoshi isn’t completely bullish on the entire altcoin market, however. He says that he’s getting ready to buy some altcoins at a steep discount, should there be another shakeout while Bitcoin (BTC) starts rallying and drawing capital away from the rest of the space.
“I’ve put some stink bids in at -20 [to] -30% on alts. It’s been a while since we’ve had a pullback worth noting. Not sure if the free ride continues but traditionally in strong trends we get volatility and shakeouts and haven’t had one since [$40,000 BTC].”
Speaking of Bitcoin, the trader says the world’s leading crypto by market cap’s recent sideways price action might be concluding and about to make way for another rally.
“BTC any pullback towards 62.5k is a great bid zone to add.
Looks as tho consolidation could be over and ready to trend again.”
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The post Polkadot Looks Ready To Fly Ahead of Parachain Auctions, According to Closely Followed Crypto Trader appeared first on The Daily Hodl.
source https://dailyhodl.com/2021/11/02/polkadot-looks-ready-to-fly-ahead-of-parachain-auctions-according-to-closely-followed-crypto-trader/