A recent study has shown that Ripple, Polkadot and Stellar holders are among the most anxious crypto holders/traders. This means that they would sell whenever negative news about these cryptos or the crypto market comes out and be reluctant to buy. Although these cryptocurrencies have behaved differently, as our Ripple and Polkadot Analysis will show.
Polkadot Daily Chart Analysis – DOT Breaks Above the Range on Parachain Auction Date
DOT/USD jumps on new parachains excitement
Polkadot made a decent recovery, from around $10 at the end of the bearish period in cryptos in May, to almost $40 by the middle of September. It eve made new highs after the first flash crash in September, but eventually, the bearish sentiment in the crypto market caught up with it.
Although, the 200 SMA (purple) held as support on the daily chart. So, Polkadot was not looking too different from other cryptos regarding the price action, but today the situation looks a lot brighter, after the jump we saw yesterday. Polkadot broke above the top of the range which stood just below $40 and reached $43, so it has turned bullish now after trading sideways for about a month.
The reason for this jump yesterday was the announcement of the new parachain auction date, which will start on November 11. After the great interest for Kusama parachain slot auction, with 2.4 million KSM, Kasama’s native token, the interest is high for the new parachains,
Similar to Kusama, each auction on Polkadot last 7 days which is separated on two periods, the starting period which lasts 1 day and 21 hours, followed by the ending period which lasts five days. The bidding should end on the seventh day, when the precise moment of the close is determined by a verifiable random function (VRF) and can be at any time of the 5-day ending period. Everything will be evaluated on DOT coins so the demand for this cryptocurrency jumped higher and DOT/USD jumped too.
Ripple Daily Chart Analysis – Boring Price Action in XRP/USD
Ripple on the other hand has been feeling very uncertain. The 200 SMA (purple) has turned into the ultimate support for XRP/USD on the daily chart. Although the bullish momentum has been really weak and slow during the past few weeks.
The 50 daily SMA might have turned into support for XRP/USD
We saw a small pop above the 50 SMA (yellow) last week, after the recent developments of the Ripple-SEC lawsuit, where SEC (Securities and Exchange Commission) members had considered other cryptos as non-securities until a few years ago, while covering this fact intentionally. This is positive news for Ripple, but it only made a small jump above the 50 SMA and the climb stopped there.
So, the situation is turning positive for Ripple coin, but there has been no follow-through on the upside. Ripple and Nelnet have announced a $44 million clean energy fund, as well as a 250 million creator fund, in order to support non-fungible token (NFT) growth on Ripple. So, things are moving in the right direction, so perhaps the price will resume the bullish momentum again, but for now, the price action here is very boring.