A recent study has shown that holders of Ripple, Polkadot and Stellar are among the most anxious crypto holders/traders. This means that they are likely to sell whenever negative news about these cryptos or the crypto market comes out, that they are also reluctant to buy. But these cryptocurrencies certainly 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 renewed parachain 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 even made new highs after the first flash crash in September, but eventually, the bearish sentiment in the crypto market caught up with it.
But 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 the 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, which is Kasama’s native token, the interest in the new parachains is high.
Similar to Kusama, each auction on Polkadot lasts 7 days, divided into two periods. The starting period lasts one day and 21 hours, and it is 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), which canhappen at any time during the 5-day ending period. Everything is evaluated in DOT coins, so the demand for this cryptocurrencyhas jumped higher and DOT/USD has jumped along with it.
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, but the bullish momentum has been really weak and slow over 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, in which SEC (Securities and Exchange Commission) members considered other cryptos as non-securities until a few years ago, and intentionally covered this fact up. 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 to the upside. Ripple and Nelnet have announced a $44 million clean energy fund and a 250 million creator fund, in order to support non-fungible token (NFT) growth on Ripple. So, things are moving in the right direction, and perhaps the price will resume its bullish momentum again, but for now, the price action here is very boring.