Digital asset managers have reported a rise in the institutional capital inflow in Polkadot as the overall cryptocurrency market capitalization climbs higher. A Polkadot founder announced $774 million dedicated for developing DeFi projects. Over $80 million in institutional investment flowed into cryptocurrency funds last week. Of the $80 million, $3.6 million was dedicated to Polkadot products. Proponents expected the staking rate on Polkadot to remain steady; in contrast, there was a drop to 58.5%. Kusama’s staking rate remained steady at 42.8%. Leading cryptocurrency exchange Kraken announced support for Parachain auctions. Last week there was an announcement that the world’s largest cryptocurrency exchange, Binance, supporting the auction. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Investors can expect DOT to retrace at least 10% to retest the demand zone ranging from $35.48 to $38.76. A dip into this support area will allow the buyers who rode the recent run-up to book profit and provide the sidelined investors an opportunity to accumulate for the next leg-up.

However, Polkadot price needs to stay above this area. Such a situation sets up DOT for another leg-up to retest the range high at $50.04.

A decisive close above this level will open the path for a new all-time high at $53.88m, coinciding with the 100% trend-based Fibonacci extension level.

If the buying pressure persists, Polkadot price could continue its ascent to 161.8% level at $71.4. This climb would represent a 68% ascent from the current position and would be a new all-time high. Regardless of the optimism around Polkadot price, a breakdown of the demand zone, extending from $35.48 to $38.76, will hurt the bullishness around DOT.

Such a move will likely knock Polkadot price down to the 50% Fibonacci retracement level at $30.14. If the sellers produce a decisive close below this barrier, it will invalidate the bullish thesis and trigger a correction to $25.21 or $22.23.

Polkadot Mingling With All Time Highs

Oct 21 2021