- DOT ranked 8th on the list of blockchains by development activity (weekly commits)
- DOT’s price action turned bullish, but the trend might change soon
Polkadot [DOT] has long been known for its robust development activity. However, data seemed to suggest that this trend might just be changing soon. Will this latest drop in development have any impact on the token’s latest bull rally?
Polkadot’s dropping dev activity
Coin98 Analytics recently shared a tweet revealing the top blockchains in terms of weekly development activity. It was surprising to see that DOT couldn’t make it to the top five on the list.
According to the same, Ethereum [ETH] topped the table with over 42k weekly commits. ETH was followed by Arbitrum [ARB] and Base, as their numbers stood at 5.9k and 5.8k, respectively. Polkadot’s weekly commits stood at 5.35k with over 784 weekly developers.
AMBCrypto’s look at Santiment’s data also revealed a similar story. As per our analysis, DOT’s development activity dropped sharply over the last seven days. However, its dev activity contributor count did climb over the aforementioned period.
Source: Santiment
DOT bulls gear up
While the blockchain’s development activity plummeted, the token’s price action gained bullish momentum. As per CoinMarketCap, DOT’s price appreciated by over 13% last week. The bullish trend continued in the last 24 hours as the token’s value climbed by more than 3.5%.
At the time of writing, Polkadot was trading at $4.90 with a market capitalization of over $7.2 billion, making it the 15th largest crypto.
AMBCrypto checked DOT’s on-chain data to find out whether this trend will continue. We found that DOT’s training volume increased, which can be inferred as a bullish signal. Additionally, its weighted sentiment also improved, meaning that bullish sentiment around the token has been rising.
Source: Santiment
However, Polkadot’s funding rate climbed on the charts. Generally, prices tend to move in the other direction than the funding rate. Moreover, Polkadot’s Open Interest declined. Whenever the metric dips, it suggests that the chances of the prevailing price trend changing are high.
AMBCrypto’s assessment of Coinglass’ data also pointed to yet another bearish signal. The token’s long/short ratio dipped, meaning that there were more short positions in the market than long positions.
Source: Coinglass
Apart from this, DOT’s fear and greed index was in a “greed” position at press time. This meant that there were chances of a price decline.
Therefore, AMBCrypto looked at DOT’s liquidation heatmap to look for upcoming support and resistance zones.
Read Polkadot’s [DOT] Price Prediction 2024 – 2025
As per our analysis, liquidations will rise near $5, which might cause hindrance to DOT’s bull rally.
In case of a price correction, investors might see DOT dropping to $4.3 on the charts.
Source: Hyblock Capital
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