Altcoins

Will Polkadot (DOT) Price Fall For “Buy the Rumour, Sell the News” Ahead of Parachain Auction?

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Highlights

    The Polkadot ecosystem is all set for the massive price action ahead of its parachain auction

    The altcoin could soon dump if it falls for buy the rumour and sell the news as most of the cryptos experienced the same in the past.

Polkadot is all set for a new breakthrough. The platform announced the schedule for its much anticipated parachain auction.  According to the founders Gavin Wood and Robert Habermeier, this event marks a remarkable milestone as it accomplishes the key objectives of its whitepaper. The network’s council has planned to open up the platform’s debut parachain auctions from 11th November 2021. 

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Followed by the announcement, the DOT price has seen a massive surge of 21.84% profits in the trading volume in the last 24 hours. The price action has just begun to soar! Here we have bought you interesting information about how high the price could pump and when the probable dump could occur.

Analyst Warns on Possible Polkadot Price Dump!!

Lark Davis, a popular crypto analyst expressed his views on potential DOT price dump in the days to come. Analyst addressing about upcoming Polkadot’s parachain auction said that DOT price has the strong potential to hit ATH of $100 prior to the auction. But later he expects the price to fall as there are potential threats of sell the news.

His tweet seems to have in connection with the recent Cardano price action. Since its price had exceptional gains prior to the launch of its smart contracts, yet the ADA price fell for sell the news and dumped by almost 30%. Hence, he advised selling Polkadot by taking calculative risks.

Polkadot Price Analysis:

Polkadot price has formed a bullish pennant pattern forming new highs close to $43.12. The altcoin broke out near a crucial resistance of $34.62 followed by the huge buy pressure. As the price soared beyond $40, bears started to overtake the bulls with a slight increase in sell pressure. By looking at the one-hour chart, it is observed that buyers and sellers are giving equal fights. 

DOT price could surpass its previous ATH of $49.69 if the buyers come up in massive numbers to outpower the sellers leading to a break out of the Bullish pennant channel. If the altcoins fail to do so, then it could settle down at an immediate support level of around $36.33.

However, the platform is attempting to reach a significant milestone since its inception with a parachain auction scheduled for November. Hence, this has the strong potential to boom the price for some time. On the contrary, when we look out the history most of the prominent crypto fell to buy the rumor and sell the news. Therefore, investment with calculative risks could bring huge profits. 

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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