Polkadot Reaches A New All-Time High Amid Parachain Registration Motion Approval

November is set to be a pretty wild month for Polkadot and its DOT governance token, as bullish sentiment increased and resulted in a 20% surge on November 1 and a new all-time high at $53.25.

Source: CryptoBrowser

The main catalyst for Polkadot’s positive price action is that its team revealed that the motion to enable parachain registration and crowdloans has been approved by the Polkadot council and now awaits a public referendum.

If approved by the public referendum, the proposal would allow developers to register parachains and seek funding for projects. Pushing the parachain decision past Polkadot’s council is coming less than a month from the initial statement that the parachain functionality is ready for launch on November 11.

Meanwhile, if the public referendum votes on including parachains on Polkadot, parachain teams would be able to register their parachains and open a crowdloan on November 4.

The parachain auction would be split into two batches, with the first five auctions held for a week each in the course of five weeks. However, the parachain idea is not a new thing, as such auctions are already live on Polkadot’s canary network Kusama since June 2021.

As the proposal advances through its final stages of approval, developers would use DOT going forward instead of using Kusama’s KSM tokens to secure slots.

Shortly after the development announcement, Polkadot’s price added over 20% and managed to hit a new all-time high. And the bull run may be far from over since technical indicators are showing an ascending parallel channel on the daily chart, as DOT continues trending higher.

If the current bullish sentiment continues, DOT may be heading to the middle boundary of the prevailing chart pattern at $55.59, and later to the 127.2% Fibonacci extension level at $62.75.

Price analysts even suggest that Polkadot's price could even hit $80.39 if the current buy order trend increases.

Nevertheless, Polkadot’s price may pivot downwards, with the first possible support zone being the 78.6% Fibonacci retracement level at $42.55, which sits near the 21-day Simple Moving Average (SMA).

If further selling pressure appears, the price per DOT may tumble down to the lower boundary of the governing technical pattern at $39.94, before retracing back to the  50-day SMA at $36.71, then toward the 61.8% Fibonacci retracement level at $35.79.

However, given the 262.48% trading volume increase in the past 24 hours, Polkadot may be set up for some huge price gains short-term.