Polkadot Price Surges 20% To $43 As Community Votes Yes To Parachains Upgrade
- Polkadot to welcome the first parachains auction on November 11 after five years in development.
- DOT eyes new all-time highs above $50 in the short-term, accentuated by a positive technical picture.
Polkadot broke out in double-digit gains following a successful community vote for the next phase of the network, integrating the revolutionary parachains. Prior to the uplift, DOT has dropped to test support around $25. The recovery that followed suit struggled with the resistance at $38, forcing a pullback to $30.
At writing, Polkadot trades at $41 after testing new October highs at $43.55 (based on Binance price data). The 20% rally in the last 24 hours has taken a hiatus, but bulls do not seem to have had enough, especially with the all-time high of $50 in sight.
Polkadot Gets Ready For Parachains
Polkadot price pumped following an announcement on Wednesday that the network was finally ready for parachains. In simple terms, these are parallel sidechains executing alongside the main network relay chain. The announcement is groundbreaking for the community because the parachains have so far only been auctioned on Kusama, Polkadot’s “canary network” used for testing and development.
According to the tram at Polkadot, it has taken five years to get to this stage. Parachains are a core component of the protocol, containing a multi-chain aspect of its architecture. This is the final stage of the project’s ambitious roadmap. The founders of Polkadot, Galvin Wood and Robert Habermeier, believe that:
“The fact that such activity has been taking place on Kusama for over four months without significant issues is an important factor in considering parachains ready for launch on Polkadot.”
Polkadot Price Closes In On $50
Following the impressive rally from $30, investors have started to consider DOT’s next position above $50. The resistance at $38 had initially made it challenging for bulls to climb above $40. However, with this major hurdle out of the way, Polkadot could soon rally to new record highs.
DOT/USD Daily Chart
The MACD displays a bullish picture likely to keep DOT lifting higher. A buy signal sent on October 4 has been validated as the trend momentum indicator moved above the mean line. The uptrend will remain intact as long as the MACD keeps exploring higher levels.