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Polkadot Sets its Sights on NFTs, CBDCs with new network update proposal

PolkaDot Up Explained Image

Key Takeaways

  • The Polkadot Community (DOT)  proposed an update called Motion 131, due to the vote as a referendum 46. 
  • The price analysis of Polkadot is bullish today.

Polkadot (DOT) will soon support non-fungible tokens (NFTs) and central bank digital currencies (CBDC). An official tweet from the Polkadot team

notes that the new update, named Motion 131, will be voted in a referendum 46 on Friday. If the proposal is accepted, the Polkadot ecosystem

could attract a multitude of enthusiastic developers who would encourage further adoption and possibly a price increase for DOT. In essence, the Polkadot relay chain does not support any assets outside of DOT.

PolkaDot price increase
Source : CoinWist team

Canary network Kusama and the KSM token have the same issue. Only parachains have this functionality, especially the Statemint and Statemine parachains for Polkadot and Kusama.

Referendum 46 would update the shell parachain to the statemint parachain and interface. This would allow Polkadot users to mint their assets and NFTs on the network.

The PolkaDot above 27$ seeking 32$ price up in 24 hours

PolkaDot Price Seeking
Image by: CoinWist Team

The DOT has been falling since November 4th when it hit an all-time high of $ 55.19. The subsequent decline suggests that the alleged breakout was just a deviation (red circle) as the DOT fell below the $ 48 horizontal range shortly thereafter. 

The token was trading in the $ 27 range since December 4. This is a critical area of ​​support as it is both the 0.618 Fibonacci retracement support level and a horizontal support area.

Hence, for the upside move to continue, it is critical that the DOT stay above it. The daily time frame technical indicators are showing bullish signs.

Dot Price Gain
Source: Tradingview

The MACD, which is made up of a short and long-term moving average (MA), has created a bullish divergence and has also created several consecutive bars with higher momentum.

The fact that it is still negative while it is a bearish sign, shows potential. Signs of a bullish reversal. Similarly, the RSI has crossed above 30 and also created a bullish divergence (green line). 

The RSI is a momentum indicator where values ​​below 50 are considered bearish. The indicator is still below this line. , the 30th mark and the bullish divergence are signs of a possible bullish reversal.

Crypto trader @CryptoCapo_ tweeted a DOT chart indicating that the trend will be a bullish uptrend as long as the token trades above the USD 27

support area, which is in line with daily readings for the period.

Dot Price Chart 24H

End of the Story

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