Polkadot will soon be listed on Coinbase, as users on the American crypto trading platform would soon be able to trade DOT. The leading crypto exchange has reported that transfers have already begun for Polkadot, and trading is expected to kick off on June 16.
Due to the Coinbase effect – the surge was seen in many cryptocurrencies as the crypto exchange announces support for the asset – DOT has risen 20% in the past 24 hours, ahead of the official listing.
For reference, the average returns five days after a token listing on Coinbase is 91%, according to Messari. Investors can speculate on the Coinbase listing and the Polkadot parachain development for DOT price outlook.
Polkadot price chart: DOT surges 20%
Polkadot price action has followed the wider crypto market in the past month, plunging to deep lows of $13.65 in late May amid the crash.
Now, DOT price has slightly recovered from the swing low and has created higher lows. What does this mean for Polkadot?
On the daily chart, DOT price appears to be trading within a symmetrical triangle pattern, indicating heightened indecision. The decline in trading volume coincides with the lack of conviction seen in the market.
However, with the recent developments for Polkadot, DOT could see accelerated interest if buying pressure increases.
DOT price spiked above the 200-day simple moving average at $24.77, and Polkadot is currently relying on this level as support. The multi-chain cryptocurrency must hold on to this level of defense in hopes of rallying higher and breaking out of the declining upper trend line of the chart pattern.
Should buying pressure increase, fueled potentially from the Coinbase listing, DOT could propel to break above the upper trend line, tagging the 38.2% Fibonacci extension level at $27.48 before aiming higher.
Investors should note that if Polkadot manages to flip this level to support, DOT could aim to break out to tag the 50-day moving average and the 100-day moving average as the next targets. These moving averages act as great targets for investors to set their Take-Profit levels, as a general indicator for support and resistances.
However, if DOT reverses its fortune and loses favor to the bears, Polkadot could record lows tagging the lower trend line of the symmetrical triangle, before falling to the demand zone that ranges from the Polkadot February low at $15.57 to the January high of $19.43.
Critical demand zones which act as support for DOT is an essential area to keep an eye on to set potential stop-losses for a long position.
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Using the Full Trade feature on CoinPanel, you can map out your preferred entry when the bottom is in, and set take-profit orders at resistance levels, and at the same time, you can set your stop-losses on support levels. Without having to be logged in to the account, CoinPanel will execute the trades automatically based on the triggers set.
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What is Polkadot?
Polkadot, behind its native cryptocurrency DOT, is a multi-chain platform that looks to bring together different networks. Since various cryptocurrencies like Bitcoin, and Ether run on separate blockchains, Polkadot aims to solve the issue of interoperability.
According to a recent announcement, the Polkadot team said it is ready to begin its parachain slot auction for the Kusama networks starting June 15. The team behind the platform has been launching tests on the Kusama network. The parachain auctions will continue into July, according to Wood.
Each auction was said to require at least 1 million DOT tokens to win a parachain slot on Kusama.