What A Drop In This Key Area Can Mean For DOT?
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Polkadot ( DOT ) — seen as being on a winning streak in terms of social media metrics and development activity — has recently pulled back.
- DOT social media metrics
- Polkadot’s decline in developer activity may leave a bad taste in investors’ mouths
- DOT NFT volume fell as low as 1.64 million on September 24th
Is this sudden drop in both metrics just a temporary hiccup or could it be a warning signal for investors?
Based on the chart below, the DOT price was observed to increase in development activity in recent days. That’s surprising because Polkadot has outperformed other cryptocurrencies over the past week, but seems to be going now.
DOT Social Volume Down, Bearish Movement Looms
The decline in development activity points to a lack of developers working on Github. Obviously, this lack of development activity can leave investors with a negative impression.
DOT’s social volume has crashed, which could likely trigger an intensified bearish move. In particular, DOT’s social media engagement has decreased in recent days. Polkadot’s social metrics have seen a 12.6% drop in the past month. In addition, its weighted opinion has also dropped below 0. These chain metrics show increasingly negative sentiment at DOT.
While DOT looks heavily bearish, crypto has improved tremendously against NFT. Thus, DOT’s NFT volume has greatly increased from $364,250 seen on August 26th to as much as $1.64 million on September 24th.
By CoinMarketCapDOT is up 4.17% or trading at $6.50 at press time.
Polkadot is partnering with Tether and others
Polkadot also increases cooperation, such as with Tether. On September 23rd, Tether announced that it will launch USDT directly on Polkadot. These collaborations are aimed at legalizing DOT’s operations.
In addition, Polkadot recently adopted Chainlink, allowing Polkadot projects to use Chainlink’s data price feed. On the other hand, even if these collaborations would certainly promote DOT’s growth and scalability, the price may still decrease in the short term.
On the brighter side, falling volume for DOT, which has fallen 82.34% over the past week, means that DOT’s price may be bound for an immediate recovery.
DOT total market cap at $7.28 billion on the daily chart | Source: TradingView.com Featured image from Cryptopolitan, Chart: TradingView.com