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Polkadot price prediction: bearish divergence pattern

On Tuesday, the price of Polkadot (DOT / USD) was in a tight range as interest in cryptocurrencies rose again. The price of the coin is trading at $ 20.50, which was around 97% from its lowest level in July. This rallying gas has raised its total market capitalization to over $ 20 billion, making it the ninth largest coin in the world.

The Polkadot rally goes on hiatus

Polkadot is a rapidly growing ecosystem that was built by Gavin Wood, who was also the co-founder of Ethereum. The platform is similar to Ethereum in that it helps developers build decentralized applications. Some key differences are that it was built from the ground up using proof-of-stake technology and that it was among the first digital platforms to embrace sharding.

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Polkadot has several key components, the core of which is the relay chain. The other key components of the Polkadot ecosystems are the parachain, parathread and thread. In July, the developers launched the first parachain auctions which resulted in five winners. The Polkadot proof-of-stake consensus consists of nominators, validators, collectors and fishermen.

In recent months, other projects have been launched on the Polkadot network. Among the best are Kusama, Chainlink, Ontology, Ankr and renBTC. These are some of the most popular blockchain projects in the world. Developers love the Polkadot ecosystem for its high speed and lower cost.

Polkadot price has been in a strong bullish trend after finding strong support at $ 10.37 in July. This rally occurred as investor interest in digital currencies resumed after the slump in recent months. Other coins have also seen a substantial rise, with Bitcoin climbing $ 16,000 in the past two weeks.

Ethereum, on the other hand, nearly doubled from a low of $ 1,700 to over $ 3,200. This price action shows the close correlation between digital currencies.

Polka dot price prediction

Polkadot price

The 4H chart shows that the DOT price has been on an upward trend over the past few weeks. Along the way, the coin has moved above the ascending trend line shown in black. The price also moved above the 25 and 50 day moving averages.

It also moved above the key resistance at $ 17.70 as the MACD formed a bearish divergence pattern. Therefore, there is a possibility of a short-term pullback. If this happens, the next key level to watch will be the support at $ 17.70. On the flip side, a move above $ 22 will invalidate the bearish view.

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Kim Lee

Kim is a Chinese girl and has studied in England. Kim loves playing video games, she likes Fortnite games. Kim likes Hollywood movies. Kim's English is very good, so she became a writer. Email : kim@d1softballnews.com

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