- DOT ranked 8th on the list of blockchains by development activity (weekly commits)
DOT’s price action turned bullish, but the trend might change soon
As a researcher who has closely observed the cryptocurrency market for years, it seems that Polkadot [DOT] is experiencing a peculiar situation at present. The drop in development activity, as shown by recent data, might have some impact on the token’s latest bull rally, but it’s too early to say definitively.
Polkadot (DOT) has traditionally been recognized for its vigorous development work. But recently, there seems to be a shift in this pattern as data suggests. Could this recent dip in development activity influence the ongoing bullish trend of the token’s price surge?
Polkadot’s dropping dev activity
Coin98 Analytics recently shared a tweet revealing the top blockchains in terms of weekly development activity. It was surprising to see that DOT couldn’t make it to the top five on the list.
Based on recent data, Ethereum [ETH] led the pack with more than 42,000 weekly code contributions. Coming in second and third were Arbitrum [ARB] and Base, respectively, with approximately 5,900 and 5,800 weekly commits each. Polkadot also reported 5,350 weekly commits, with over 784 active developers contributing to its project during the same period.
Upon examining Santiment’s data as a researcher, I found that DOT‘s development activity experienced a significant decline over the past week. Interestingly, despite this decrease, the number of contributors to its development activity has increased during the same timeframe.
DOT bulls gear up
Despite a decline in blockchain development activity, the price of DOT showed increasing optimism. In fact, according to CoinMarketCap, DOT’s price increased by over 13% during the past week. This bullish trend persisted even further, as the token’s value surged by more than 3.5% in the last 24 hours.
Currently, the value of Polkadot is being exchanged for approximately $4.90 per unit, and its total market worth exceeds $7.2 billion, placing it as the 15th largest cryptocurrency in terms of market capitalization.
To determine if DOT‘s current trend would persist, AMBCrypto analyzed its on-chain data. We observed an uptick in DOT’s trading volume, indicating a potentially positive outlook. Furthermore, we noticed that the weighted sentiment associated with the token has improved, suggesting a growing optimism among investors.
On the contrary, the funding rate for Polkadot increased, a pattern typically seen when prices move in the opposite direction. Notably, the Open Interest for Polkadot also decreased, which often indicates a higher likelihood of the current price trend reversing.
According to AMBCrypto’s analysis using Coinglass’ data, another bearish indication emerged. This is because the number of short positions in the market was higher than the number of long positions, as indicated by a decrease in the token’s long/short ratio.
Additionally, the Fear and Greed Index of DOT was indicating “greed” at the moment of reporting. In other words, the potential for a price drop existed at that point.
Thus, AMBCrypto examined the liquidation heatmap of DOT to identify potential support and resistance levels in the near future.
Read Polkadot’s [DOT] Price Prediction 2024 – 2025
According to our findings, the price for liquidations could approach around $5, potentially slowing down or halting the upward momentum of DOT.
In case of a price correction, investors might see DOT dropping to $4.3 on the charts.
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2024-08-25 05:11