- Derivatives metrics revealed that futures investors were buying DOT.
- Polkadot’s development activity also remained on par last week.
The recent market condition has allowed several cryptos to lift their prices, and Polkadot [DOT] was not an exception. It was interesting to see that while the token’s price rallied, things on the development end were also optimistic, which can have a larger impact on DOT’s value.
Polkadot starts a bull rally
According to CoinMarketCap, DOT’s price has risen by more than 4% in the last seven days. However, things got better in the last 24 hours as Polkadot’s value surged by over 6%.
At the time of writing, DOT was trading at $8.12 with a market capitalization of over $10.4 billion. Investors were also actively trading DOT at this higher price, as the token’s trading volume went up by over 75% over the last day.
It was surprising to see that despite the promising price uptick, DOT’s weighted sentiment remained in the negative zone, meaning that bearish sentiment was dominant in the market.
Nonetheless, its social volume was high, reflecting its popularity in the crypto space.
Source: Santiment
Though market sentiment was bearish, metrics told a different story. For example, the token’s open interest increased along with its price.
A rise in the metric generally increases the chances of the current price trend continuing. Additionally, its Binance funding rate also shot up, pointing out that derivatives investors were actively buying DOT at its higher price.
Source: Santiment
To see whether the trend would last, AMBCrypto took a look at DOT’s daily chart. The token’s MACD displayed a bullish crossover. Its Relative Strength Index (RSI) also registered an uptick, indicating that the chances of a continued price uptrend were high.
If the uptrend lasts, DOT might face resistance near $9.2. A breakout over the level might result in DOT crossing the $10 mark. On the other hand, if the price trend changes, DOT’s price might plummet to its support level of $6.27.
Source: TradingView
Read Polkadot’s [DOT] Price Prediction 2024-25
Polkadot maintains its streak
While the token’s price gained upward momentum, development activity around the blockchain also remained high. This aligns with the blockchain’s history as Polkadot is known for its high development activity.
As per a recent tweet from Polkadot Insider, the blockchain’s daily code commits spiked on the 23rd of February. DOT’s average number of developers was 122 last week, while its average user count remained more than 6k.
Source: X
