- Polkadot could not triumph over Cardano in terms of development activity.
- DOT sellers continued to dictate the market momentum.
According to Santiment, Polkadot [DOT] has fallen behind Cardano [ADA] in terms of development activity.
For the uninitiated, development activity tracks the public GitHub repositories done by a project. In simpler terms, the metric shows how committed developers are to shipping new features on a network.
On many occasions, AMBCrypto had reported how Polkadot was the leading project per this metric. But in recent times, Cardano has displaced it.
Furthermore, the latest post by Santiment meant that there were more active developers within the Cardano network than Polkadot.
🧑💻 Here are #crypto's top coins by development activity. Notable #github commits past 30d:
1 @cardano $ADA
T2 @polkadot $DOT
T2 @kusamanetwork $KSM
4 @optimismFNP $OP
5 @ethstatus $SNT
6 @hedera $HBAR
7 @cosmos $ATOM
8 @dfinity $ICP
9 @chainlink $LINK
10 @ethereum $ETH pic.twitter.com/zhN01674ag— Santiment (@santimentfeed) January 22, 2024
DOT’s local top may be here
Unlike the development activity, Polkadot’s Social Dominance jumped. At press time, AMBCrypto found that the Social Dominance has risen to -0.776%.
The increase in this metric implies that DOT’s share of discussion among the top 100 cryptocurrencies has improved.
However, regarding the price action, the hike might not be a positive signal. A low Social Dominance could indicate that a cryptocurrency’s price was close to its bottom.
But in a case like this when the broader market is correcting, DOT’s Social Dominance could signal its local top.
Should this be the case, DOT’s price might fall below $6. However, the Funding Rate at press time was 0.01%.
Funding Rate is the cost of holding an open perp position. When the Funding Rate is positive, it means longs are paying short. If it is the other way around, then it implies that shorts are paying longs a funding fee.
Source: Santiment
So, the positive Funding Rate implies that it had become more expensive for longs to keep their positions open. It also implies that the difference between the spot price and the perp price had become larger.
This position is potentially bearish for DOT.
Next entries could be around $5 to $5.50
Thus, there is a high chance the price could from refrain keying into the underlying resistance. From the technical angle, there was a notable resistance at $6.72.
At this point, sell-offs were intense, and bulls might be unable to flip the area.
Volatility-wise, the Bollinger Bands (BB) showed the Polkadot native token was exiting the contraction. If the BB continues to expand, then there could be wider price fluctuations.
Depending on the action of market participants, DOT might either fly as high as $7.50.
How much are 1,10,100 DOTs worth today?
But in a highly bearish case, the price could drop to $5.50. A look at the RSI showed that it had dropped to 19.51, indicating the dearth of buyers in the market.
Source: TradingView
Should sellers continue to dictate the momentum, DOT might have no other option than to decrease. However, mid to long-term entries could be between $5 and $6.
