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Polkadot’s recent market performance has been challenging, even though its on-chain metrics are favorable. Investors remain optimistic about Polkadot’s long-term potential, supported by a significant rise in daily active users.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/b06c7354e0904277a0f5b0032838344f.png" />This growing user engagement adds to the positive outlook for Polkadot’s future, despite the current struggles in its price performance.<h3 id="polkadot-price-falls-despite-strong-metrics">Polkadot Price Falls Despite Strong Metrics</h3>Polkadot (DOT) has experienced a price decline, trading around $5.68, reflecting a 2.8% drop over the last 24 hours. This decrease follows the <a href="https://cryptosheadlines.com/santa-cruz-government-implements-blockchain-for-service-delivery/" rel="noopener noreferrer nofollow">blockchain’s implementation</a> of a new asynchronous backing upgrade, designed to improve scalability and interoperability among parachains. Despite these advancements, the price has yet to benefit from the network’s strategic improvements.In contrast, on-chain data highlights a positive trend. According to Polkadot Subscan, the daily holder count has reached a record 1.3 million, with 321 new holders added in the past day. Active users have surged by 19.21%, and on-chain volume has hit new highs, demonstrating strong network engagement. These metrics suggest that while the price is falling, investor confidence in DOT remains robust, <a href="https://cryptosheadlines.com/whale-accumulates-357-billion-pepe-tokens-indicating-potential-price-increase-ahead/" rel="noopener noreferrer nofollow">potentially indicating a future price</a> recovery.However, Polkadot’s price chart shows a continued downward trend, with the value below both the 50-day and 200-day exponential moving averages (EMAs). The Relative Strength Index (RSI) is at 40.90, approaching oversold levels, and the Chaikin <a href="https://cryptosheadlines.com/smart-money-flows-in-shib-gala-chz-top-token-inflow-list/" rel="noopener noreferrer nofollow">Money Flow</a> (CMF) index stands at 0.04, reflecting neutral to slightly positive capital flow. This analysis points to minimal but present capital inflow into Polkadot.<h3 id="polkadot-s-short-term-price-struggles-vs-long-term-optimism">Polkadot’s Short-Term Price Struggles vs. Long-Term Optimism</h3>Polkadot (DOT) is currently in a <a href="https://cryptosheadlines.com/cardano-ada-price-in-consolidation-phase-until-2024/" rel="noopener noreferrer nofollow">consolidation phase</a>, which has lasted about 1.5 months. If the price falls below the $5 support level, it may decline further toward the yearly low of $4.91. On the other hand, breaking through key resistance levels at $6.17 and $6.77 could signal the start of a bullish trend. Despite the bearish short-term momentum, the overall <a href="https://cryptosheadlines.com/ethereum-solana-etfs-market-sentiment-future-outlook/" rel="noopener noreferrer nofollow">market sentiment</a> is optimistic. The Long/Short ratio stands at 2.83, with 73.86% of traders taking long positions on DOT.<a href="https://cryptosheadlines.com/citi-analysts-upgrade-coinbase-coin-to-buy-with-33-growth-projection/" rel="noopener noreferrer nofollow">Also Read: Citi Analysts Upgrade Coinbase (COIN) to ‘BUY’ with 33% Growth Projection</a>In summary, while Polkadot is experiencing short-term price challenges, its positive on-chain metrics and ongoing network upgrades provide a promising outlook for long-term investors. The rising holder count and increased user activity suggest that the current price dip may be a result of market fluctuations rather than fundamental issues. Investors remain hopeful about Polkadot’s <a href="https://cryptosheadlines.com/top-7-altcoins-under-0-05-future-potential-watch/" rel="noopener noreferrer nofollow">future potential</a> despite the present volatility.Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.Join Cryptos Headlines <a href="https://linktr.ee/cryptosheadlines.com" rel="noopener noreferrer nofollow">Community</a>Follow Cryptos Headlines on <a href="https://news.google.com/publications/CAAqBwgKMLz3-wowvuzoAg" rel="noopener noreferrer nofollow">Google News</a>

Polkadot Price Declines Despite High Holder Count

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Ďalšie články zverejnené 30. 7. 2024

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