Polkadot (DOT) seems to have received information regarding the plan to publish a comprehensive update to the protocol.
The news, while having some statements on resistance, has pushed DOT prices up significantly, even hitting fresh highs at $ 31.9.
This movement continues the movement since the beginning of February 2021 which is seen continuing to form new highs and accumulatively reaching more than 100%.
The latest positive sentiment is the planned launch of the new DOT protocol in which the rollout of the update will be divided into three main phases.
Currently, testing is in the Rococo Testnet phase where network developers or users can test the communication mechanism between parachains.
The platform uses a mechanism called Cross-Chain Message Passing-lite or XCMP-lite, which makes it easy for parachains to send coins and messages over the Polkadot network.
The Rococo testnet itself has been formed since August 2020, but all its components have not yet been completed.
However, it does not rule out that this network can be used because the next main stage is voting.
This voting was conducted to find out whether the update could be implemented which would be tested on the Kusama network, namely the Polkadot walnut network.
Kusama is a network that is the middle point of the testnet and mainnet because it is often used for initial implementation trials.
After the implementation in Kusama looks stable and all the checks have been carried out, the second vote will be held at the Polkadot main network.
This vote was conducted to introduce the parachain auction system. Until now, there is no clear time regarding this phase.
Even so, it seems that Polkadot is currently approaching the launch stage which is predicted to occur in the first quarter of 2021.
Currently, there are still some obstacles to the stability of the Rococo Testnet. However, CEO Alex Melikhov assured that everything went according to plan. He has stated,
"I am still optimistic about the planned launch schedule for Polkadot Parachain and the existing problems only encourage continuous improvement of technology quality. Given that there is still one month as planned, the launch of the DOT auction system is imminent."
Seeing the movement since February 1, 2021, DOT has appreciated by around 101%, which indicates that this month's movement will continue to be positive.
Currently, there is little possibility for a minor correction due to potential selling pressure after touching the highest price.
With the potential for an evening doji star pattern on the 1 hour chart at the moment and also the 4 Hours candlestick looking red, there is a possibility for a correction.
The RSI indicator shows that a small correction will occur due to a downward movement, but it is still in the buy zone.
MACD and MA Cross indicators support the potential for appreciation because MA Cross is still above the price and MACD is still moving up.
Therefore, in the long term this appreciation is likely to continue. However the correction is likely towards $ 30 to $ 29.4.
If the price continues its decline afterwards, it is likely that appreciation will cease in the medium term as long as the lower limit of $ 25.4 is not broken.
However, if it goes up, the next target is likely to be around $ 32 before continuing to go up to $ 35.
Currently, DOT is still fighting for the fourth position in market cap alongside ADA and XRP.
