- DOT Ranked 8th on Blockchains List by Development Activity (Weekly Commitments)
- DOT Price Has Turned Bullish, But The Trend May Change Soon
Dots (DOT) has long been known for its high development activity. However, data seems to suggest that this trend may soon change. Will this latest drop in development impact the token’s latest bullish rally?
Polkadot abandons its development activity
Coin98 Analytics recently shared a tweet revealing the top blockchains in terms of weekly development activity. It was surprising to see that DOT failed to crack the top five on the list.
According to the same, Ethereum (ETH) topped the charts with over 42,000 weekly commitments. ETH was followed by Arbitration (ARB) and Base, with figures of 5.9K and 5.8K respectively. Polkadot’s weekly commits stood at 5.35K with over 784 weekly developers.
AMBCrypto’s analysis of Santiment data also revealed a similar story. According to our analysis, DOT development activity has dropped sharply over the past seven days. However, the number of contributors to development activity has increased over the aforementioned period.
Source: Santiment
DOT Bulls Prepare
As blockchain development activity has plummeted, the token’s price action has gained bullish momentum. CoinMarketCapDOT price 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 climbing by more than 3.5%.
At the time of writing, Polkadot was trading at $4.90 with a market cap of over $7.2 billion, making it the 15th largest crypto.
AMBCrypto checked DOT’s on-chain data to see if this trend will continue. We found that DOT’s drive volume has increased, which can be inferred as a bullish signal. Additionally, its weighted sentiment has also improved, meaning that the bullish sentiment around the token has increased.
Source: Santiment
However, Polkadot’s funding rate has been climbing on the charts. Typically, prices tend to move in the opposite direction to the funding rate. Additionally, Polkadot’s open interest has been decreasing. Whenever the metric drops, it suggests that the chances of a change in the prevailing price trend are high.
AMBCrypto’s analysis of Coinglass data also highlighted another bearish signal. The token’s long/short ratio dropped, meaning there were more short positions in the market than long positions.
Source: Coinglass
Apart from this, the DOTs fear and greed index was in a “greed” position at the time of going to press. This meant there were risks of a price decline.
Therefore, AMBCrypto looked at the DOT liquidation heatmap to look for upcoming support and resistance areas.
Read Polkadot (DOT) Price Prediction 2024 – 2025
According to our analysis, liquidations will increase to near $5, which could hamper DOT’s rise.
In case of a price correction, investors could see DOT drop to $4.3 on the charts.
Source: Hyblock Capital
