Connect with us
Active Currencies 11247
Market Cap $1,560,556,952,169.10
Bitcoin Share 49.75%
24h Market Cap Change $0.34

Where Polkadot stands after 7-day hike

2min Read

DOT’s 13% hike brought fresh breath into the market. But traders are not as enthusiastic as they once were.

Where Polkadot stands after 7-day hike

Share this article

  • Investor expectations around DOT had turned bearish, but a recovery might not be far away.
  • Polkadot still lagged behind many L1 blockchains in terms of active users.

Like many of its peers, Polkadot [DOT] enjoyed upticks in the last seven days. While this price rise lasted a while, the sentiment around the token seemed to have changed.

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

One way to look at this is by considering the long/short ratio. Based on data from Coinglass, DOT’s long/short ratio fell to 0.97. For context, the long/short ratio represents the amount of an asset available for short selling against the amount for buying.

The indicator also serves as a measure of investors’ expectations. So, when the long/short ratio is above 1.0, it suggests bullish sentiment by traders. However, DOT’s position indicates that broader sentiment towards the token was mostly bearish.

Polkadot [DOT] long/short ratio

Source: Coinglass

However, the Open Interest (OI) did not follow the long/short ratio route. Instead, it had stabilized at a low level. Known as the total number of future contracts held, the Open Interest determines market strength while assessing market sentiment.

So, the OI stability suggests that liquidation, mostly suffered by shorts may be over. Thus, DOT could be preparing to rally again.

Polkadot Open Interest

Source: Coinglass

As per its development activity, Polkadot’s condition was unusual since it most times excelled in this area. At press time, the development activity was down 78.93. However, Polkadot’s NFT volume remained impressive.

At the time of writing, NFT volume was 1.73 million. But it is noteworthy to mention that the volume went on a non-stop increase between 11 and 24 June, hitting 4.82 million. 

The surge implies that interest in digital collectibles linked to Polkadot spiked. In addition, Polkadot NFTs were on the radar of active traders.

Polkadot development activity and NFT volume

Source: Santiment

Furthermore, DOT still found it difficult to compete with other Layer One (L1) blockchains as regards active users. As of this writing, DOT’s active users were a little over 4,000.

Is your portfolio green? Check the Polkadot Profit Calculator

The decline suggests that many addresses might not be holding on to their DOT tokens for long. And this could be bearish for DOT in the short term.

Polkadot active users

Source: Token Terminal

On a closer look, it seemed that the DOT market sentiment has shifted from the optimism shown a few days back. But if the price recovers, as the OI indicated, then there is a chance that DOT sentiment also changes.


Victor is a full-time journalist at AMBCrypto. Before his sojourn into the world of journalism, he was a “buy the top, sell the bottom” merchant while doubling as a sales funnel copywriter. Victor’s focus is the exciting on-chain landscape of the cryptocurrency market and its underlying technology. His other interests include politics, Afrobeats, sports, and marketing.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.