Polkadot network has been making headlines this week ever since the parachains auction. The auction happened this week and the demand for DOT tokens was expected to go high as those who wanted to book slots in the auction had to purchase the tokens. However, DOT has not managed to recover from its bears and in the past 24 hours, the coin has dipped by 2.1%. At the time of writing, DOT tokens were trading at $21.03.
Polkadot Price Analysis
Despite the parachains auction, DOT is still not out of the woods. Looking at the chart above, it is clear that the token is still trading at the lows that were created by the May market crash. With the coin now trading at $20.99, it is inching closer to retesting its lower critical support levels of $20. However, the drop might create a buying opportunity for investors who want to buy the dip.
The current price of the token may also create a buying opportunity for investors who want to leverage the low prices. The next resistance level of the token will be at $25, and if it creates a price surge, it will give DOT the strength needed to push to $30. However, a price movement to $25 may create a selloff from investors who want to leverage the price movement. This may lead to stagnation at $20.
Several factors are showing optimism of the price of DOT increasing. These factors lay on the superiority of Polkadot compared to other networks including Ethereum. The scalability of the network has pushed DeFi developers to invest in it to enjoy lowered fees and high speeds.
This week, Parallel Finance raised $2 million to boost the DeFi ecosystem on Polkadot. According to the founder of Parallel Finance, “One of the biggest problems we are trying to solve is the lack of lending protocols in the Polkadot/Kusama ecosystem. We’ve seen a significant demand for DOT/KSM holders to borrow and lend their tokens.”
Where to Buy Polkadot
Some of the cryptocurrency exchanges where you can purchase DOT include:
Binance cryptocurrency exchange – They operate the worlds biggest bitcoin exchange and altcoin crypto exchange in the world by volume Exchange Blockchain and crypto asset exchange
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