Assessing the odds of Polkadot’s [DOT] rally this week
Polkadot [DOT] did not have the best of its time last week as it registered only 2.5% seven-day gains. However, the growth was still promising as the entire crypto market struggled to go green.
Several positive developments have happened in the DOT ecosystem lately, which might have fueled this increase. One of which is the launch of Tether on the Polkadot ecosystem.
This development grabbed the attention of many, which made the alt the top-performing coin on 24 September in terms of social activity.
— ?? CryptoDep #StandWithUkraine ?? (@Crypto_Dep) September 24, 2022
Though at the time of writing, DOT’s performance was negative, several on-chain metrics suggested that better days are ahead of us. At press time, DOT was trading at $6.34 with a market capitalization of $7,100,453,221.
Better days to come soon?
Polkadot’s weekly digest report revealed several positive developments in the community, which have the potential to fuel DOT’s next bull rally.
The most notable was the introduction of the Tether stablecoin to the Polkadot network. Apart from DOT, Tether is also live on other blockchains, including Avalanche, Kusama, Ethereum, Solana, Algorand, EOS.
?@Tether_to launches on @Polkadot;
?Resuming @AcalaNetwork's operations;
?Turing Network by @oak_network removes SUDO;
? Spacewalk by @pendulum_chain is coming;
?@wormholecrypto launches on @MoonbeamNetwork;
?Realignment of Mosaic by @ComposableFin;https://t.co/d5LnUNVqDv
— Polkadot News ☮️ (@polkadotnews) September 25, 2022
All these positive developments give investors hope for brighter days ahead. Interestingly, Crypto Santa, a popular crypto analyst on Twitter, pointed out that DOT was trading just above its historically significant support at $6.
In his analysis, he pointed out that if DOT breaks its support, investors’ hopes might be shattered as it might decrease its price further.
Request #1: $DOT
Trading just above a historically significant support level, if #DOT loses the $6 level, it'll likely experience a massive sell-off! ?‼️
— Crypto Santa (@Blockchainsanta) September 25, 2022
A look into the metrics
However, a look at DOT’s metrics revealed a different story, as most of them were supporting a price surge in the coming days.
For instance, DOT’s development activity increased considerably over the last month before declining slightly, which is, by and large, a positive indicator.
DOT’s social volume has also gone up lately, indicating increased interest from investors in the token. Not only that, but DOT’s NFT space also registered some interesting movements.
CryptoQuant’s data revealed another major bullish signal. DOT‘s, Relative Strength Index (RSI), and stochastic were in an oversold position.
This development indicated that DOT’s next northbound breakout might happen sooner than expected. Considering all the positive developments with on-chain metrics, it is most likely that DOT will register an uptick in the days to come.