Bitcoin is currently making buzz after an impressive price rally as it has broken through the $50,000 barrier yet again. Just like other cryptocurrencies out there whose price is influenced by larger market sentiment, Polkadot (DOT) may well seem to be doing just fine with that setup.
For those who are not in the loop, Polkadot has remained bullish for over a month now as the cryptocurrency’s four weekly candles ended up in the green zone. Additionally, Polkadot’s price has surged by more than 170 percent from July 20’s price of just $10.3. On August 21, DOT made its way to $29, though it came across with several consolidations as $28.5 acted as a strong resistance. Such was a very pivotal level for Polkadot as it acted as some sort of support during the last rally.
As of writing, however, Polkadot’s price took a bit of a dip at $25.53, but it’s worth noting that the DOT’s so-called higher lows are consistent. This translates to a sustained rally, not to mention a bullish signal.
Albeit the fact that DOT follows bitcoin’s (BTC) price, its rally is described as straight and more sustained as compared to BTC. The main reason behind it is the robust support DOT’s been getting from its traders.
Not all is looking good
Even though it’s sustained price and strong support, not all is looking good for Polkadot. If DOT’s metrics are anything to go by, things a quite concerning regarding the said altcoin. If the data from Sanbase is anything to go by, Polkadot’s development activity is hovering over at an all-time low. Reports suggest that has been taking some nosedives after reaching its peak on July 13.
Another thing to point out is that social sentiment – which is considered to play a massive role in price rallies – is not too kind with Polkadot. DOT proponents need not fret, though, since this moderate sentiment the altcoin’s been getting didn’t affect its ROI which is a good thing.
In its seven-day RIO v USDT was up by 13.85 percent, +102.12 percent for one month, +25.42 percent for three months, and had a yearly ROI of +599.81 percent.
Some crypto pundits, on the other hand, warned traders that Polkadot’s price might encounter some pullbacks along the way. One of the signs that DOT is bound for a pullback is the presence of bearish momentum divergence.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.