- DOT ranks 8th on the list of blockchains by development activity (weekly commits).
- DOT’s price action has turned bullish, but the trend may change soon.
Polkadot (DOT) It has long been known for its strong development activity. However, data seems to suggest that this trend may soon change. Could this recent slowdown in development have an impact on the token’s recent rally?
Polkadot development activity halted
Coin98 Analytics recently shared: tweet We reveal the top blockchains in terms of weekly development activity. It was surprising that DOT did not make it to the top 5 on the list.
According to the same content, Ethereum (ETH) It ranked first with over 42,000 weekly commits, followed by ETH. Arbitrage (ARB) And Base grew to 5.9k and 5.8k respectively. Polkadot’s weekly commits grew to 5.35k with 784+ weekly developers.
AMBCrypto’s analysis of Santiment’s data shows similar results. Our analysis shows that DOT’s development activity has decreased significantly over the past seven days. However, the number of contributors to development activity has increased over the aforementioned period.
Source: Santiment
DOT Bulls Gear Up
While blockchain development activity has plummeted, token price action has been bullish. CoinMarketCapThe price of DOT has increased by more than 13% in the past week. The bullish trend has continued over the past 24 hours, with the token’s value increasing by more than 3.5%.
At the time of writing, Polkadot was trading at: It is the 15th largest cryptocurrency with a market cap of over $7.2 billion and a price of $4.90.
AMBCrypto checked the on-chain data for DOT to see if this trend continues. We found that DOT’s training volume has increased, which can be inferred as a bullish signal. The weighted sentiment has also improved, which means that bullish sentiment around the token is rising.
Source: Santiment
However, Polkadot’s funding ratio has been rising on the chart. In general, prices tend to move in the opposite direction to the funding ratio. In addition, Polkadot’s open interest has been decreasing. Whenever the indicator is falling, it suggests that the prevailing price trend is likely to change.
AMBCrypto’s assessment of Coinglass data also points to another bearish signal: the token’s long/short ratio has declined, meaning there are more short positions than long positions in the market.
Source: Coinglass
In addition to this, DOT’s Fear and Greed Index At the time of writing the article the position was “greedy”, meaning that there was a possibility of a price drop.
Therefore, AMBCrypto took a look at DOT’s liquidation heatmap to find upcoming support and resistance zones.
read Polkadot (DOT) Price Prediction 2024 – 2025
Our analysis suggests that the liquidation price could be closer to $5, which could derail the bullish rally in the Department of Transportation.
If the price corrects, investors can see DOT dropping to $4.3 on the charts.
Source: Hyblock Capital