Polkadot: This is why DOT’s recovery is just around the corner…
- DOT’s price action showed some recovery, however, RSI and MFI were oversold at press time.
- DOT’s weighted sentiment showed significant recovery indicating a positive trader outlook.
The last 30 days haven’t been easy on most cryptocurrencies in the market, Polkadot [DOT] being one of them. However, the scenario may soon witness a change as Santiment’s latest tweet on X (formerly known as Twitter) favored the Polkadot network.
Realistic or not, here’ DOT’s market cap in BTC’s terms
As per Santiment, the Polkadot network made it to the list of top 10 crypto assets by development activity over the last 30 days.
T1 @Polkadot $DOT
T1 @kusamanetwork $KSM
3 @Cardano $ADA
4 @chainlink $LINK
5 @hedera $HBAR
6 @vegaprotocol $VEGA
7 @ethstatus $SNT
8 @cosmos $ATOM
9 @dfinity $ICP
10 @Filecoin $FIL pic.twitter.com/PpdVDgafw1
— Santiment (@santimentfeed) September 13, 2023
The fact that Polkadot made it to the top of the list indicated that Polkadot developers were making significant contributions toward the growth of the network. While this would surely raise the spirits of several troubled DOT investors, was this enough to bring about a change in the price of the altcoin as well?
All is well if the price sees an uptrend…
As per data from CoinMarketCap, DOT’s press-time price didn’t exactly scream bullish. Although DOT did manage to surge by 0.11% in the last hour and 0.29% in the last 24 hours, its seven-day price was 5% lower. DOT, at the time of writing, exchanged hands at $3.987.
Exactly a month ago, DOT was exchanging hands at $4.988, and over the last 30 days, DOT stuck to the bearish side of the market.
Although there was some recovery that was seen on the price front, the indicators still maintained their bearish momentum. At press time, DOT’s Moving Average Convergence Divergence (MACD) stayed below the zero line. If that wasn’t all, the MACD still displayed a bearish crossover.
Furthermore, a look at DOT’s Relative Strength Index (RSI) in the oversold region was enough to show that DOT was the victim of intense selling pressure. However, this also meant that a trend reversal was due anytime soon. Additionally, the Money Flow Index (MFI) stayed in the oversold region thus increasing the chances of a move upward in the next few days.
Slow and steady but for how long?
On-chain intelligence platform Santiment indicated that at the time of writing, DOT’s volume wasn’t anywhere near its July peak. However, some recovery was seen over the last few days but wasn’t impressive enough. Furthermore, DOT’s Binance funding rate also didn’t paint a positive picture considering the strengthening red bars.
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However, an improvement in the weighted sentiment did point toward traders and holders showing a positive sentiment toward DOT.
Despite DOT’s not-very-convincing performance on the price front, the network continued to be in the news. on 12 September, the network announced its partnership with ZodiaCustody and Party Technologies.
The partnership aimed to help financial institutions stake DOT. Thus, enabling them to participate in a process that provides security and decentralization in the Polkadot network, and provides custody services for the ecosystem.
— Polkadot @Token2049 (@Polkadot) September 13, 2023