Polkadot fans might want to know this before they go too far in DOT

  • Polkadot topped the list of blockchains in terms of development activity
  • However, DOT metrics and indicators do not seem to favor its growth

Polka dot [DOT] It recently hit the headlines when DOT topped the list of tokens in the Polkadot ecosystem in terms of social activity. This development was optimistic, as it demonstrated the popularity of DOT in the crypto community.

In addition to the above information, Polkadot is ranked first when it comes to highest development activity.

However, despite these updates, things weren’t very favorable for DOT. According to CoinMarketCap, DOT has registered a negative performance of 3% in the past seven days. At the time of publication it was trade $5.55 with a market capitalization of over $6.3 billion.

Read polka dots [DOT] predict the price 2023-2024

DOT investors should be careful

The DOT’s Stochastic was in a range Oversold Which was a huge bullish sign. Moreover, though Point Topping the list of blockchains in terms of development activity, Santiment Scheme revealed a different story.

According to Santiment data, development activity at the Department of Transportation has trended south and eased over the past week. This was not a good sign for the blockchain. DOT volume has also been declining in recent days.

However, the derivatives market breathed a sigh of relief PointBinance’s funding rate has recorded an increase. The token’s social volume also increased last week, reflecting its popularity.

Source: feeling

But be careful with bears…

PointThe daily chart showed that things could get worse, as several market indicators supported lower prices in the coming days. For example, the Relative Strength Index (RSI) posted a decline, which was a bearish signal.

Unbalanced Volume (OBV) followed a similar path, increasing the chances of a price drop. A similar theme is revealed with the Exponential Moving Average (EMA) range. Therefore, investors should be careful before betting on Polkadot in the coming days.

Source: TradingView

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