The Polkadot price relentless rally accelerated on Wednesday as investors waited for the start of the new parachain auctions. The DOT token jumped by more than 10% and tested its highest level since May 19. This brings the total market value of the network to more than $29 billion.
Parachain auctions
The Kusama and Polkadot prices jumped on Wednesday as investors reflected on the new set of parachain auctions that will start today. The auction process will end on September 29 and then the winner will be revealed later on. The first auctions led to key winners, including Karura, Moonriver, Shiden, Khala, and Bifrost.
Since their win, these developers have continued to improve their platforms. For example, Karura enabled transfers and governance while the number of cross-chain transfers rose to thousands.
These auctions are important for the Polkadot ecosystem. After the auctions, developers continue building on Kusama and then the stable versions are pushed to Polkadot.
Therefore, the Polkadot price is rising since investors expect more market activity during the slot launches. Another reason why the price is rising is that the performance of key Ethereum killers has been on a strong bullish trend. In addition to Polkadot, other coins that have surged recently are Elrond, Avalanche, and Solana.
Polkadot price prediction
The daily chart shows that the DOT price has formed a strong rebound lately. This recovery has a V-shape, meaning that there are more buyers than sellers. The coin is trading at $30.17, which is the highest level since May 19. As a result, key momentum indicators have been rising while the price remains comfortably above the 50-day moving average.
Therefore, I suspect that the bullish trend will continue in the near term as bulls target the key resistance at $50, which is slightly above its all-time high. This bullish trend will remain so long as the price is above the 50-day EMA.
