Altcoin
Polkadot shines as DOT stays in the dark. Is recovery on the cards?
A tweet from Polkadot Insider highlighted that the network had been doing extremely well on the social front. However, DOT’s price failed to follow suit. Will DOT see a recovery thanks to the network’s soaring popularity?
- The Polkadot network witnessed a massive surge on the social front.
- However, its price action along with metrics indicated that DOT had some recovery to make.
On 30 July, AMBCrypto reported that as per ChatGPT Polkadot [DOT] may finally hit the $100 mark by December 2023. Seems like the Polkadot network was on its way to achieving that. This was because as of 1 August, a tweet from Polkadot insider stated that over the last seven days, Polkadot gained popularity on the social front.
POLKADOT SOCIAL METRICS WEEKLY RECAP
?Dive into the social buzz around @Polkadot
?Over the past 7D, Polkadot has been making waves across social media platforms.
?The community is buzzing with excitement from discussions, mentions, and engagements
Detail?#Polkadot #DOT pic.twitter.com/ALJslsuhvW
— Polkadot Insider (@PolkadotInsider) August 1, 2023
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As per the tweet, the network’s average galaxy score was up by 16% over the last seven days. Furthermore, its social mentions stood at 643 which was a 36% surge. Polkadot’s bullish sentiments and social engagements also shot up considerably as per the update.
Is DOT in high spirits?
Despite the significant performance of the last seven days on the social front, DOT didn’t seem in the best of health. As per data from coinglass, DOT’s long/short ratio favored the stance of short holders.
Long positions held stood at 41.27% whereas short positions made up 58.73% of the holders. This was a strong bearish signal.
Source: coinglass
Additionally, data from the intelligence platform Santiment also showed that the weighted sentiment reached its monthly peak. However, the sentiment towards DOT didn’t help the altcoin perform well on the price front.
Furthermore, DOT’s development activity also stayed in tandem with its price and maintained sideways action. To add to the not-so-bullish sentiment, DOT’s volume, although surged, stayed far from its monthly peak observed on 18 and 19 July. A drop in the volume along with a drop in DOT’s price could be taken as a strong bearish signal.
Source: Santiment
More trouble on the cards
Data from TradingView indicated that DOT, at the time of writing, was exchanging hands at $5.1386. Although it showed some recovery from its opening price of the day, DOT’s indicators showed a different picture.
The Moving Average Convergence Divergence (MACD) displayed a bearish dominance at press time. This was because the MACD line (blue) was moving below the signal line (red). Furthermore, the Awesome Oscillator (AO) also flashed red above the zero line.
How much are 1,10,100 DOTs worth today?
A look at the Relative Strength Index (RSI) showed that although there was a slight uptick, it still moved below the neutral line. The RSI at 46.43 indicated that at the time of writing, DOT was under selling pressure.
Source: TradingView
The slight uptick in the RSI could be taken as a tiny sign of reviving confidence. However, traders and investors may still need to maintain caution. Although Polkadot shined as bright as the sun, DOT may take a while to step out of the dark.
