Connect with us
Active Currencies 14713
Market Cap $2,664,482,685,097.07
Bitcoin Share 51.50%
24h Market Cap Change $5.12

Polkadot records surges but DOT seems to be caught in the crossfire between…

3min Read
Polkadot news

Share this article

  • Polkadot recorded immense growth in new and active accounts over the past two weeks 
  • The sharded protocol’s development activity surged amid a recent DOT hike but the crypto is less likely to improve the performance

Polkadot [DOT], in its latest round-up of the past week activities, announced that new accounts on its chain multiplied ten times from the status of the previous two weeks. Confirming the initial report by dotinsights, active accounts also grew about 400% within the same period.


Read Polakdot’s [DOT] Price Prediction 2023-2024


However, there was more to the developments than just account increases. In other aspects, TRAC, the utility token of the Original Trail parachain launched live on the Polkadot network.

Development hikes and derivatives pull down

Following the update, DOT’s development activity soared. According to Santiment data, the blockchain’s development activity increased from its low point of 61.67 on 7 November. As of this writing, it was a whopping 99.5. At this phase, it implied that Polkadot had prioritized upgrades to its chain, which was evident with the series of collaborations it rolled out recently. 

In addition, the DOT price also aligned with the development state. This was due to the data shown on the on-chain analytics platform. As of this writing, DOT was trading at $5.857 — a 3.19% increase in the last 24 hours.

Polkadot price and development activity

Source: Santiment

However, the increase in active accounts did less to impact traders sentiment. At press time, data from Santiment showed that there had been a decline in the Binance funding rate.

At -0.012%, it implied that derivatives market traders were hardly looking at DOT to potentially make profits. This state also translated to a decrease in options and futures market interest.

Polkadot funding rates on Binance

Source: Santiment

Despite the interest subside, active DOT traders felt the wrath of the market still. According to Coinglass, DOT’s liquidations were $419.320 in the last 24 hours. A close look at the liquidation data revealed that long-positioned traders were mostly the victims of the 14 November wipeout. 

While shorts were liquidated $251,250 on the said date, longs lost $555,770 to the market. Considering the situation, it meant that the decreases DOT experienced for most of 14 November, impacted the futures and options outcome.

However, data from the derivative tracking platform showed that shorts had mostly been the casualty of 15 November, owing to the uptick DOT registered lately.

Polkadot liquidations and derivatives market data

Source: Coinglass

Cut to the chase

Per the four-hour chart, it was likely that DOT lost the greens’ sustenance. This indication was revealed by the Directional Movement Index (DMI). According to the DMI, the seller control (red) was above the buyer strength (green). Despite being at 20.79, the Average Directional Index (ADX) seemed to support its stay over the buyers.

With the Average Directional Index (ADX) at 30.98, DOT’s possible movement indicated support to the bearish side. However, the aforementioned possibility did not mean certainty especially as the Relative Strength Index (RSI) maintained a good buying momentum at 52.47.

Polkadot price action

Source: TradingView

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.