Posted:
- DOT is up almost 5% in the last 24 hours along with an increase in volume.
- Social metrics remained high, but a number of indicators turned bearish.
Polakdot [DOT] recently witnessed a major increase in revenues, which meant an increase in the use of the blockchain. Interesting enough, Avalanche [AVAX] also recently recorded a similar increase, following which the token’s price skyrocketed. Will DOT follow a similar trend?
Polkadot’s captured value is increasing
Polkadot Insider Posted a tweet on December 20 highlighting that Polkadot ranks second on the list of blockchains with the highest turnover in the past seven days.
Kusama [KSM], Polygon [MATIC], And Solana [SOL] also reached the top 5.
While DOT ranked second, AVAX took the first position on the list. An increase in revenue also means that there must have been an increase in network rates.
AMBCrypto reported previously, AVAX witnessed an increase in fees generated as its value reached $3.5 million. Shortly afterwards, AVAX became one of the few top coins to post double-digit gains as its price rose more than 30% at the time.
Therefore, AMBCrypto checked Polkadot’s status to see if it also followed a similar trend. Our analysis of Token Terminal’s data showed that POINT‘s revenues and fees rose sharply on December 16.
Source: Token terminal
The price of DOT is rising
Like AVAX, DOT’s value also registered an increase. According to CoinMarketCap, DOT is up over 5% in the last 24 hours alone. At the time of writing, Polkadot was trading at $7.16 with a market cap of over $9.3 billion.
The token’s trading volume also rose along with its value, which was bullish.
Sentiment around the token remained generally positive, as weighted sentiment spiked a few times last week. POINTThe social volume also remained high.
Moreover, DOT remained in demand in the derivatives market, as evidenced by the green Binance funding rate.
Source: Santiment
To understand whether DOT can sustain this price increase, AMBCrypto checked the token’s daily chart. According to our analysis, POINT‘s MACD showed a bearish crossover despite the price uptrend.
Read Polka dots [DOT] Price prediction 2023-24
The Money Flow Index (MFI) fell from the overbought zone and headed towards the neutral point, increasing the chance of a price drop in the following days.
Nevertheless, Polkadot’s Chaikin Money Flow (CMF) remained well above the neutral line, indicating that the northward price movement could continue.
Source: TradingView