Polkadot Ranks 1st in Development Activity This Month: Time to Long DOT?
Perhaps a welcome shift for individuals that work in the cryptocurrency world. Amidst the gloom and doom plaguing the space, Polkadot’s governance token, DOT, remained the most discussed coin within the community. And the good news doesn’t end there.
The latest @PolkadotInsider tweet highlighted how Polkadot boasts more active devs than Ethereum. That displays the blockchain’s widespread appeal in the crypto spectrum as Polkadot secured the first spot as far as development activity is concerned this month.
Nevertheless, whether DOT presents a massive ‘buy’ opportunity remained a lingering question. Should long on Polkadot’s native token amidst the decent achievement?
Polkadot Fails to Hit New Peaks
You probably know the crypto market is enduring a bearish assault amidst external factors of doubt and uncertainty. Market players had to forget the anticipations of DOT witnessing a relief rally soon. The alternative token saw its value plummeting substantially in all charts.
CoinGecko data shows the alt dropped 23.7% within the last two weeks. While publishing this blog, the alt traded at $5.15, reflecting a loss. Moreover, its correlation with BTC and ETH shows DOT tracking the broad market price movements.
Such tendencies might spell a disaster for DOT. Continued weakness by Bitcoin and Ethereum will trigger downsides for DOT. While publishing this news, DOT’s correlation with ETH & BTC was 0.96, suggesting that Polkadot will follow the market leaders.
Moreover, the Relative Strength Index displayed plunging readings, heading into the oversold territory. The immediate future remains bleak as the asset’s price has never soared beyond the 50s.
DOT Not a Buy, For Now
Lower highs and lower lows back DOT’s downtrend. Moreover, the widening Bollinger Band shows heightened near-term market volatility. The following days will see the Exponential Moving Average ribbon offering a notable signal for shorts amidst continued price dips.
Traders and investors may resort to short positions to remain profitable as the prices plunge. Market participants with a buy-low, sell-high approach should be careful as the price nears the 161.80 FIB retracement mark, as a short-term surge is unlikely.
Improved social and development activity might not rescue the token if the broad crypto market dips into recession.
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