- Polkadot is down more than 3% in the past 24 hours.
- Market indicators and derivatives metrics looked bearish.
Dot [DOT] fell along with the rest of the crypto market as the price fell 3% over the past 24 hours.
However, before market conditions changed, analysis showed there were chances of DOT reaching $14-$15. Let’s take a look at the current state of DOT to see if that is still to be expected.
There are polka dot bears
FLASH, a popular crypto analyst, recently posted tweet It highlighted that there were chances of DOT reaching $14-$15 in the coming weeks before reaching a market top sometime in May.
If DOT manages to test its support near $0.92, things could turn in its favor. A successful test of that support could trigger a bull rally, allowing DOT to reach $15.
However, given the current market scenario, that didn’t seem to happen for most cryptos. Various top coins, including Ethereum [ETH], witnessed corrections.
According to CoinMarketCapDOT was trading at $9.27 with a market cap of over $13 billion.
The downtrend was accompanied by a 40% increase in trading volume, which set the stage for the bear rally.
AMBCrypto’s analysis of Santiment’s data showed that Polkadot’s social volume dropped. Nevertheless, weighted sentiment improved.
Source: Santiment
Things also looked quite bearish in the derivatives market. Our analysis of Coinglass’ facts revealed that DOT’s funding rate increased.
This meant that derivatives buyers were actively purchasing DOT at the lower price. Moreover, the Open Interest rose while the price fell.
An increase in the measure generally indicates that the ongoing price trend may continue, further indicating a continued price decline.
Source: Glassnode
Polkadot technical indicators also supported the bears. Both Polkadot’s Relative Strength Index (RSI) and Money Flow Index (MFI) registered a decline in recent days.
The MACD also showed a clear bearish upper hand on the market.
Source: TradingView
Network activity is also decreasing
Apart from the price, Polkadot’s network activity has also been declining for several weeks.
Read Polka dots [DOT] Price prediction 2024-25
AMBCrypto’s analysis of Artemis’ facts revealed that the blockchain’s daily active addresses have fallen in recent months.
As a result, the number of blockchain transactions also followed a similar downward trend. Things were also not in order in terms of the recorded value, because income fell.
Source: Artemis