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What A Drop In This Key Area Can Mean For DOT? – Stocks to Watch
  • Thu. Apr 18th, 2024

What A Drop In This Key Area Can Mean For DOT?

ByJet Encila

Sep 26, 2022
Polkadot

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Polkadot (DOT) – which is seen to be on a winning streak in terms of social media metrics and development activity  – has been on a retreat recently.

  • DOT social media metrics nosedives 
  • Polkadot’s decline in developer activity could leave a bad taste in the mouth of investors
  • DOT’s NFT volume off to as high as 1.64 million on September 24

 Is this sudden drop in both metrics just a temporary hiccup or could be a warning signal to investors?

Judging by the chart below, DOT price was seen to have nosedived in terms of development activity in the past few days. It’s surprising as Polkadot has been outpacing other cryptocurrencies over the past week but seems to be losing steam now.

DOT Social Volume Down, Bearish Movement Looms

The reduction in terms of development activity hints at the lack of developers working on Github. Evidently, this lack of development activity could leave a negative impression on investors.

DOT’s social volume has capsized which could likely trigger an enhanced bearish movement. Notably, there is also a drop in DOT’s social media engagement in the past few days. The social metrics of Polkadot are seen to have nosedived by 12.6% as seen in the past month. More so, its weighted sentiment has also dropped below 0. These on-chain metrics show the increasingly negative sentiment circling DOT.

Despite DOT looking intensely bearish, the crypto has seen a massive improvement in terms of NFT. With that being said, DOT’s NFT volume has grown a lot from $364,250 as spotted on August 26 to as high as $1.64 million on September 24.

According to CoinMarketCap, DOT price has spiked by 4.17% or trading at $6.50 as of press time.

Chart: Santiment

Polkadot Collaborates With Tether, Others

Polkadot is also ramping up in terms of collaborations such as with Tether. On September 23, Tether announced that they will be rolling out USDT right on Polkadot. These collaborations are in pursuit of the legalization of DOT’s operations.

More so, Polkadot also recently adopted Chainlink allowing Polkadot projects to employ the data price feed of Chainlink. On the other hand, even if these collaborations are bound to fuel growth and scalability for DOT, still the price could go down in the short term.

On the brighter side, DOT’s declining volume which has dropped by 82.34% in the past week signifies that DOT’s price could be bound for immediate recovery.

DOT total market cap at $7.28 billion on the daily chart | Source: TradingView.com

Featured image from Cryptopolitan, Chart: TradingView.com

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Image and article originally from www.newsbtc.com. Read the original article here.