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Shorting Polkadot may not be a good decision because these metrics reveal…

3min Read
Shorting Polkadot may not be a good decision because these metrics reveal...

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  • A new roadmap released for Polkadot and Kusama
  • DOT remained popular in the derivatives market and the crypto community 

The last few weeks were not quite impressive for most of the cryptos, as they failed to register upticks due to the bearish market condition.

However, things might have started to change as several cryptos showed signs of revival. Polkadot [DOT] was one of the cryptocurrencies that saw growth in its value in the last 24 hours.

According to CoinMarketCap, DOT’s price grew nearly 2% in the last day, and at press time, it was trading at $5.97 with a market capitalization of more than $6.7 billion. Despite the increase in price, DOT’s volume was considerably low, which did not provide a solid foundation for the hike.

Source: Santiment


Read Polkadot [DOT] price prediction 2023-24


New Updates

Interestingly, DOT’s development activity went up over the last week, which is a positive signal for a network. This sudden increase might have been caused by the new updates that were revealed recently.

Consider this, with support from Parity Technologies, SubWallet built a new interactive Ecosystem Map to offer a panoramic view of the Polkadot and Kusama ecosystems. 

Through a voting system that will go live on 18 November at 12:00 AM UTC, the new map intends to encourage two-way exchanges between users and projects.

The roadmap also displayed a few key statistics regarding the Polkadot ecosystem. According to the data, there were more than 1.1 million accounts on DOT, over nine million transactions were completed on DOT, and nearly 13 million blocks were finalized.

Moreover, on its chain, Polkadot added ten times as many new accounts as it had in the previous two weeks.

Not only this, but Peaq Network, which is built on Polkadot, also announced its new partnership with Crust Network. Developers using Peaq may handle the data requirements for their DApps in a novel way with Crust by storing the data on a secure peer-to-peer network.

Though these updates helped the development activity increase over the last week, the graph then registered a downtick on 15 November.

What to expect

These new developments piqued the interest of the derivatives market, as DOT’s Binance funding rate was higher than the previous week. DOT also remained popular in the crypto community as its social volume spiked lately.

Though the metrics looked ambitious, DOT’s daily chart was not as supportive of a price surge in the days to follow.

The Exponential Moving Average (EMA) Ribbon revealed the bears’ advantage in the market as the 20-day EMA was below the 55-day EMA.

The Chaikin Money Flow (CMF) was also significantly below the neutral mark, which might restrict DOT’s price from going up. Incidentally, the MACD gave some hope as it revealed the possibility of a bullish crossover.

Source: TradingView

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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.
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