- DOT struggles to safe bullish momentum and we discover why.
- Polkadot dominance slides to 12-month lows however fee-paying transactions underscore life indicators.
Polkadot [DOT] has been in a downward spiral for the final 5 months. There have been numerous bullish makes an attempt alongside the way in which and indicators that the bulls would take over, just for worth to increase its draw back.
DOT traded at $4.14 at press time, which was roughly a 27% premium type its August highs. Extra importantly, the cryptocurrency kicked off this week with bullish expectations after flashing a bullish RSI divergence in the previous few weeks.
Though it could nonetheless be too early to evaluate DOT’s latest tried upside, the cryptocurrency seems to be experiencing the identical downside this week. Demand for DOT has been fairly low regardless of its latest upside, therefore its battle to bounce again.
Why DOT has been struggling to discover a bullish footing
A lot of the high performing cryptocurrencies are aligned with key narratives which have prevailed over the previous few months. The Polkadot community didn’t capitalize on this development. As a consequence, liquidity has been flowing elsewhere.
The above clarification coincides with Polkadot’s dominance efficiency. For instance, the community demonstrated a surge in dominance between October and December final yr.
This section was characterised by a strong worth rally. Polkadot dominance has since then been slashe from 0.63% to 0.%.
Polkadot’s dominance bottomed out at 0.27% in the direction of the tip of August. This displays the downward trajectory noticed in DOT’s worth motion. It was additionally evident within the community’s efficiency.
An surroundings characterised by declining liquidity and the shortcoming to faucet into narratives additionally influenced on-chain volumes.
Polkadot’s highest 12-month on-chain quantity was noticed in March this yr. Actual quantity peaked at $988.1 million.
Polkadot’s every day actual quantity in the previous few days was restricted beneath the $50 million degree. This was additional proof of the extent of how the community’s utility slowed in the previous few months, consequently affecting DOT.
Will there be redemption for Polkadot and DOT?
There’s some excellent news regardless of all of the doom and gloom. Polkadot’s ecosystem maintained respectable exercise to this point this yr. The community just lately reported that the variety of fee-paying transactions working on Polkadot rollups doubled throughout the final 12 months.
Learn Polkadot [DOT] Worth Prediction 2024-2025
In the meantime, DOT is near its October 2023 lows. That is necessary as a result of there was a powerful demand resurgence close to these ranges, resulting in wholesome rally that peaked in March.
Traders might even see this as a chance to leap in at discounted costs.