The DOT price exceeds this week’s resistance and is rising 10% each week.
After a pause, the price action reached a new 5-week high of $4.93.
A breach of this resistance line would allow buyers to target $5.12.
The Polkadot (DOT) price has broken out of its range this week to trade above 10% in the green zone on a weekly basis. Meanwhile, the platform is working with Ontology (ONT) to promote the adoption of decentralized identity solutions.
Basic Analysis: ONT Partnership
Polkadot, on which Ontology plans to develop applications, is a fragmented block chain that can perfectly interconnect a number of chains within a single network. According to the official announcement, Ontology and Polkadot will work together to “accelerate the integration of both ecosystems and increase user trust and data sovereignty across the industry.
Polkadot supporter Parity Technologies will help Ontology integrate its Decentralized Identity (DeID) solution to facilitate the process of accessing the DID solution within the Polkadot block chain.
“The integration of Ontology’s DeID solution is part of a wider Ontology effort to build a parachute on Polkadot… the parachute [can]provide a range of credit-based services for decentralized identity and cross-chain communication.
“These credit services will include OScore, our newly introduced credit scoring system designed to seamlessly accelerate the potential for borrowing or lending based on a user’s cryptographic currency transactions and asset management history.
In addition, Parachain will also provide chain-wide liquidity to the Polkadot ecosystem, which Ontology will use to accelerate the current development of the decentralized financial (DeFi) ecosystem while lowering the entry barrier for app developers.
Initiatives such as these aim to “in return, increase the liquidity of digital assets such as ONT, ONG and DOT,” Ontology said.
“We look forward to working closely with the Ontology team to increase Polkadot’s use of ONT ID 2.0 and realize the benefits of digital identity, privacy for DeFi projects and beyond,” said Eric Wang, Parity’s director of ecosystem development.
The Blockchain team also said it plans to place offerings in a Parachain slot and to launch one of Polkadot’s first Initial Parachain Offerings (IPO).
Technical Analysis: The breakout confirmed
DOT/USD tested the descending trend line near the $4.34 level last week before closing above it on Saturday. Buyers then returned deeper to test the broken resistance again and allow new DOT buyers to join in and drive the price action towards a new 5-week high of $4.93.
Polkadot Daily Chart (TradingView)
As can be seen from the chart above, the price action stopped at the horizontal resistance at $4.90. A break in this line paves the way for a journey above the $5 mark, where sellers would use $5.12 to regroup and cap new profits.
The DOT/USD price broke above its previous range to trade over 10% higher this week. Elsewhere, Ontology blockchain is working with Polkadot to accelerate the development of distributed ID solutions.