In the fast-paced world of digital assets and blockchain technology, strategic partnerships often emerge as catalysts for innovation and industry growth. The latest collaboration between Zodia Custody and Parity Technologies is no exception, promising to reshape the landscape of institutional engagement within the blockchain realm.
Zodia Custody, a leading digital asset custodian, boasts influential shareholders such as Standard Chartered, SBI Holdings, and Northern Trust. On the other hand, Parity Technologies, a dynamic software development company with a presence in Berlin, London, Lisbon, and Singapore, has made waves with its successful launch of Polkadot in 2021 and continues to be a driving force behind the network's evolution. This alliance is set to amplify the reach and impact of the Polkadot ecosystem, fostering innovation and bridging the gap between traditional finance and the burgeoning digital asset frontier.
This latest development has not yet reflected in DOT’s price, however, as the altcoin recorded a 24-hour loss. Nonetheless, bullish technical flags on both DOT’s 4-hour and daily charts were on the verge of being triggered. Moreover, a medium-term falling wedge pattern had formed on the cryptocurrency’s daily chart. If this pattern is validated, DOT’s price may breakout towards the upside soon.
Empowering Institutional Access
At the heart of this groundbreaking partnership lies a shared vision to bolster institutional access to the Polkadot ecosystem. Polkadot, often hailed as a pioneering blockchain space, offers a fertile ground for innovation and empowers Web3's foremost innovators to bring their concepts to life swiftly. Zodia Custody's pivotal role in this collaboration is to provide tailored custody services specifically designed for the Polkadot ecosystem. This move ensures secure market access while delivering bank-grade digital asset custody services to financial institutions worldwide. Furthermore, Zodia Custody takes pride in adhering to stringent standards related to Anti-Money Laundering (AML), Financial Crime Compliance (FCC), and Know Your Customer (KYC) regulations. Furthermore, it is registered with regulatory authorities in the UK, Ireland, and Luxembourg, exemplifying its commitment to regulatory compliance and best practices.
Expanding Institutional Participation through Staking
The next phase of this partnership aims to open new avenues for financial institutions to participate in the Polkadot ecosystem by staking Polkadot's native token, DOT. This participation will occur while assets are securely stored in Zodia Custody's state-of-the-art cold storage facilities, offering financial institutions a seamless and secure means of engaging with the Polkadot network. This approach not only safeguards digital assets but also encourages and amplifies institutional involvement, fortifying the decentralized Polkadot ecosystem.
Bridging the Divide between Traditional Finance and Digital Assets
Julian Sawyer, CEO of Zodia Custody, underscored the pivotal role this partnership plays in bridging the gap between traditional finance and digital assets, emphasizing, "The chasm between the world of digital assets and traditional finance is gradually narrowing. Still, strategic partnerships, such as this one, will expedite that convergence on a grand scale." He pointed out that collaborating with Parity is instrumental in facilitating future institutional participation and making Polkadot's technology more accessible and amenable to the demands of the financial industry.
Björn Wagner, CEO of Parity Technologies, echoed this sentiment, describing the partnership with Zodia Custody as a mutually beneficial endeavor. He also highlighted the immense potential for financial institutions to actively engage in the Web3 future as enabled by Polkadot. Simultaneously, he emphasized the unique opportunity for the Polkadot ecosystem to directly interact with these institutions, fostering a symbiotic relationship between the traditional financial sector and the blockchain space.
Long-Term Growth and Educational Initiatives
Going beyond immediate implementations, the collaboration between Zodia Custody and Parity Technologies promises to support the continued evolution of the Polkadot ecosystem. This includes educational efforts aimed at enlightening institutions about Polkadot technology through collaborative research and development initiatives. Zodia Custody is committed to championing various global initiatives associated with Parity and Polkadot, further solidifying the partnership's dedication to the long-term growth and development of the blockchain industry.
The partnership with Zodia Custody will undoubtedly have a long-term positive impact on the price of DOT. Nevertheless, the altcoin recorded a loss over the past day of trading. According to the cryptocurrency price tracking website, CoinStats, DOT’s price slipped 0.77% during the last day of trading. Consequently, the cryptocurrency was trading hands at $3.99 at press time.
Price chart for DOT (Source: CoinStats)
The negative daily performance had pushed DOT’s weekly, monthly and yearly performances deeper into the red zone as well. Subsequently, DOT’s price was down 5.86% and 20% over the past 7 and 30 days respectively. Moreover, the yearly performance for the altcoin stood at -48% at press time.
DOT was able to reach a daily high of $2.06 in the past 24 hours. It had, however, since retraced to trade at its current level. As a result, the Ethereum-killer was trading closer to its 24-hour low at $3.95.
4-hour chart for DOT/USDT (Source: TradingView)
Sellers were able to drag DOT’s price below the $3.940 support level over the past 72 hours. During this time, the cryptocurrency’s price dropped to a low of $3.908. It then continued to trade below the key support level for a couple of hours before bulls identified the altcoin’s price as a buy opportunity. This resulted in DOT’s price reclaiming a position above the $3.940 support, where it continued to trade at press time.
A recently triggered technical flag suggests that DOT’s price may attempt a challenge at the $4.160 barrier in the coming 24-48 hours. During the previous 12 hours, the MACD line on DOT’s 4-hour chart crossed above the MACD Signal line. This signaled that short-term momentum shifted in favor of buyers, which may lead to an increase in DOT’s price.
In an extremely bullish scenario, DOT’s price could even rise to $4.345 in the following few days. This bullish thesis will be validated if DOT is able to close a 4-hour candle above the $4.160 resistance level within the next 48 hours. Conversely, failure to close a 4-hour candle above this resistance level in the next 2 days may put the altcoin at risk of dropping to the previously-breachead support level at $3.940.
Daily chart for DOT/USDT (Source: TradingView)
Meanwhile, a falling wedge pattern had formed on DOT’s daily chart. This bullish pattern suggests that the cryptocurrency’s price may break out towards the upside soon. If this pattern is validated, DOT may have the momentum needed to overcome the $4.160 resistance and potentially do the same with the $4.345 barrier as well in the subsequent few days.
If DOT is able to close a daily candle above $4.345, then it will have a clear path to continue its ascent towards $4.790. This bullish thesis may be invalidated, however, if DOT breaks below the immediate support level at $3.940.
A bullish technical flag that was on the verge of triggering on DOT’s daily chart hinted that the bullish pattern may be validated in the coming few days. At press time, the daily RSI line was closing in on the daily RSI SMA line. If these two technical indicators cross it will signal that bulls have gained the upper hand on DOT’s short-term charts. This could then be the early confirmation of the predicted bullish breakout.
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.