Ethereum

bullish

2024

Coin98

Polkadot

<ul> 
 <li aria-level="1">On-chain metrics indicate an increase in trading volume and positive sentiment, potentially signaling continued price rises.</li> 
 <li aria-level="1">Contrasting signals as DOT’s funding rate increases, suggesting a potential price correction could follow the recent gains.</li> 
</ul> 
Polkadot (DOT), long celebrated for its vigorous development efforts, is currently experiencing a shift in development activity which could influence its market position.&nbsp; 
Despite ranking eighth among blockchains in weekly development activity, <a href="https://x.com/Coin98Analytics/status/1826996265982566407">recent data</a> from Coin98 Analytics suggests that Polkadot has not sustained its previous intensity in this arena, dropping out of the top five for weekly commits.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Check out the number of Weekly Commits and Weekly Active Devs on popular blockchain platforms <a href="https://t.co/nMyCKAh5eI">pic.twitter.com/nMyCKAh5eI</a> 
 — Coin98 Analytics (@Coin98Analytics) <a href="https://twitter.com/Coin98Analytics/status/1826996265982566407?ref_src=twsrc%5Etfw">August 23, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
This development slowdown might pose questions about its ongoing projects and <a href="https://www.ethnews.com/polkadot-decoded-2024-uniting-innovators-in-blockchain-technology/">future innovations</a>. 
As Ethereum leads with over 42,000 weekly commits, followed by newer entrants like Arbitrum and Base, Polkadot trails with 5,350 commits from 784 developers over the same period.&nbsp; 
<figure id="attachment_88912" aria-describedby="caption-attachment-88912" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-88912" src="https://www.ethnews.com/wp-content/uploads/2024/08/Polkadot-DOT-15.05.00-24-Aug-2024-.png" alt="Polkadot-DOT-15.05.00-24-Aug-2024-" width="2048" height="693">
 <figcaption id="caption-attachment-88912" class="wp-caption-text">
 Source: Santiment
 </figcaption>
</figure> 
Although there’s a decrease in activity, the number of contributors has seen an uptick, which may hint at a restructuring or pivoting in development focus. 
<h2 id="b-polkadot-s-market-behavior-tells-a-different-story-b">Polkadot’s market behavior tells a different story</h2> 
Over the past week, DOT’s price saw an appreciation of 13%, with a further increase of 3.5% in the last 24 hours, as per CoinMarketCap data. Currently, DOT is trading at $4.90 with a market capitalization of $7.2 billion, positioning it as the 15th largest cryptocurrency by market cap. 
Analysis of DOT’s <a href="https://www.ethnews.com/amid-market-panic-crypto-whales-are-buying-find-out-which-altcoins-theyre-accumulating-2/">on-chain metrics</a> by ETHNews indicates an increase in trading volume—a traditionally bullish signal—alongside an improvement in weighted sentiment, suggesting a growing positive outlook among traders. 
<figure id="attachment_88916" aria-describedby="caption-attachment-88916" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-88916" src="https://www.ethnews.com/wp-content/uploads/2024/08/Polkadot-DOT-15.07.54-24-Aug-2024-.png" alt="Polkadot-DOT-15.07.54-24-Aug-2024-" width="2048" height="693">
 <figcaption id="caption-attachment-88916" class="wp-caption-text">
 Source: Santiment
 </figcaption>
</figure> 
However, a rise in the funding rate typically predicts a potential reversal in price direction, adding a layer of complexity to the bullish narrative. 
Further insights reveal a decline in Open Interest and a dip in the long/short ratio, signifying a dominance of short positions over long ones in the market. This configuration typically anticipates a possible shift in the prevailing price trend. 
<figure id="attachment_88920" aria-describedby="caption-attachment-88920" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-88920" src="https://www.ethnews.com/wp-content/uploads/2024/08/open-interest-dot-chart.png" alt="open-interest-dot-chart" width="2048" height="528">
 <figcaption id="caption-attachment-88920" class="wp-caption-text">
 Source: Coinglass
 </figcaption>
</figure> 
Moreover, with the fear and greed index positioned at “greed,” there’s an expectation of potential price corrections ahead.&nbsp; 
According to liquidation heatmap analysis, significant liquidations could occur near the $5 mark, potentially stalling the bull run. If a correction does materialize, DOT prices could retract to around $4.30. 
<figure id="attachment_88924" aria-describedby="caption-attachment-88924" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-88924" src="https://www.ethnews.com/wp-content/uploads/2024/08/heat-map-dot.png" alt="heat-map-dot" width="2048" height="1136">
 <figcaption id="caption-attachment-88924" class="wp-caption-text">
 Source: Hyblock Capital
 </figcaption>
</figure> 
Investors and market spectators will need to keep a keen eye on these developments. The mixed signals from <a href="https://www.ethnews.com/aventus-supply-chain-solution-demonstrates-polkadots-impact-on-aviation-inudstry/">development activity</a> and market behavior suggest that while DOT has potential, it also faces significant tests that could shape its trajectory in the competitive crypto market. 
<div class="cryptoboxes" id="mcw-12512" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-chartcoin="DOT" data-chartcurrency="USD" data-chartrate="1.000268" data-charttype="chart" data-chartview="day" data-charttheme="light" data-chartsmooth="true" data-chartareacolor="" data-chartbgcolor=""></div>
</div> 
The current price of DOT (Polkadot) is $4.895 USD, showing a decrease of 1.81% in the last 24 hours. Here’s a technical analysis based on the latest data: 
<figure id="attachment_88899" aria-describedby="caption-attachment-88899" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-88899" src="https://www.ethnews.com/wp-content/uploads/2024/08/DOTUSDT_2024-08-25_00-00-06.png" alt="DOTUSDT_2024-08-25_00-00-06" width="1384" height="857">
 <figcaption id="caption-attachment-88899" class="wp-caption-text">
 Source: Tradingview
 </figcaption>
</figure> 
Price Trend: Over the past week, DOT has seen a significant increase of 12.10%, indicating some bullish activity. However, in the past month, it has declined by 14.98%, reflecting a volatile market situation. 
<h3 id="b-key-levels-to-watch-b">Key Levels to Watch</h3> 
<ul> 
 <li style="font-weight: 400;" aria-level="1">Support Level: Strong support is identified around $4.30. If DOT remains above this level, there is potential for a bullish reversal.</li> 
 <li style="font-weight: 400;" aria-level="1">Resistance Levels: The next resistance levels are around $5.12, $6.18, and $7.14, which are critical for DOT to surpass to confirm a sustained uptrend.</li> 
</ul> 
<h3 id="b-potential-scenarios-b">Potential Scenarios</h3> 
<ul> 
 <li>Bullish Case: If DOT can hold above the support at $4.30 and break past the resistance at $5.12, it could aim for the $6.18 and $7.14 levels.</li> 
 <li>Bearish Case: A failure to maintain above the $4.30 support could lead to further declines, potentially testing lower levels.</li> 
</ul> 
The post <a href="https://www.ethnews.com/dot-unleashed-is-polkadot-poised-to-overtake-ethereum-with-this-new-strategy/">DOT Unleashed: Is Polkadot Poised to Overtake Ethereum with This New Strategy?</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

DOT Unleashed: Is Polkadot Poised to Overtake Ethereum with This New Strategy?

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