Polkadot Falls Despite Five Parachains Launch; Is this an Opportunity to Buy?

Vinod Dsouza
Source: Unsplash

Polkadot failed to live up to expectations and plummeted in the indices after its five parachains auctions went live. For the uninitiated, PolkaDot is now the first heterogeneous blockchain that has launched five other blockchains in its own ecosystem. The five parachains that went live over the Weekend are- Acala, Moonbeam, Parallel Finance, Astar, and Clover. All the mentioned new parachains mainly focus on investments, loans, and DeFi.

Despite the launch, DOT fell below $30 on Sunday and is struggling to cross the mark for close to three days. It saw a ray of hope today as its charts turned to green but remained to be less volatile. This isn’t the case for DOT as it remained a champion in terms of volatility and gave investors ample room to decide when to book profits.

However, its razor-thin margin for three days has locked the hands of day investors and they are unable to book profits. Polkadot’s performance for a month has been unimpressive and is down -38.4%. DOT traded sideways at the start of December and straightaway dipped during the third week of the month. Unfortunately, DOT seems to be facing downward pressure and might dip further in the coming days.

Is The Dip A Good Opportunity to Buy Polkadot?

The answer is plain and simple, yes! Polkadot has always been and will be under the bracket of the top 25 cryptos in the world. It has real-world use-cases in terms of its software that boasts of a ‘sharded multichain network’.

In short, users and developers can use its blockchain to launch and operate their own blockchains. Its sharded platform works simultaneously to benefit other blockchains and parallelly benefits its own.

Polkadot despite being at $26 currently, is still affordable as its price moves dramatically during the bull runs. However, at first, DOT needs to breach the $30 mark in the coming days to position itself at weekly highs. A failure to do so can make it fall to the bearish claws and dip further to $22.

It is advised to wait and watch DOT’s movements and candlesticks before taking an entry position in DOT. If it is clear that Polkadot can breach the $30 mark, it can be signaled as a buy call.

Another point to be noted is that holding on to Polkadot for the long term can be extremely beneficial. It is known to reach new all-time highs regularly could be at a sweet position unaffordable to the average buyer in the coming years.

At the time of publishing, Polkadot was trading at $26.45 and is up +6.8% in the 24-hours day trade.