Polkadot: Can DOT enter a bull run as the network growing?
Polkadot Insider, Polkadot Insider, posted an interesting update on September 23, 2022. According to the update, the performance of “developers” contributors over the past seven days has seen an upward trend.
DOT trades as low as $50 in 2021, but the current scenario in the overall crypto market, DOT has seen a sharp drop in price. However, with some positive news about DOT, it makes sense to look back at its performance.
Review DOT price movement
Looking back on the long term using the daily timeframe, after the DOT period peaked above $53, a downtrend has begun. Looking at the six-hour time frame, DOT has been unable to break the $6.64 resistance for the past six days.
The support in the same time frame is around $6.09. However, on the daily timeframe, resistance is largely still in the $8.09 area, with resistance on the six-hour timeframe acting as support.
The Directional Movements Indicator (DMI) shows a signal line and a minus DI line above 20, indicating a downtrend. The Relative Strength Index (RSI) line is below the neutral zone, also indicating a downtrend.
The Balanced Volume (OBV) indicator shows an almost flat line indicating low activity, which can also be seen with the Volume indicator. Additionally, you can see that a few times volume spiked, as confirmed by volume indicators and OBV, that the $8 resistance was broken. All this in the daily schedule.
Development is on the rise
Despite the disappointing price tag, Polkadot's popularity and activity have increased somewhat. Recent reports from Santiment show that development activity has witnessed a notable uptrend.
Earlier this month, Polkadot development activity surpassed that of Ethereum [ETH], Solana [SOL], and Algorand [ALGO]. In addition, Polkadot also intends to support USDT transactions on its widely known network.
The addition of the largest stablecoin option to additional decentralized finance applications could have a favorable impact on development activities as a result of this news.
With the development of various projects on the Polkadot chain, the DOT token will definitely be used more. This can affect price action as more demand will be generated from increased usage.
DOT holders could see a rally into the $11 zone if it can break the short and long term resistance levels.
Sep 25, 2022