The key to the bullish reversal of the DOT is … – Bitcoin Magazine
Polkadot (DOT), after hitting an ATH of $ 55 on Nov. 4, has declined significantly so far and is currently trading at $ 44 at press time. In fact, at number 8, the altcoin is down more than 17% over the past week. With optimism about another ATH seemingly waning, there are some positive signs for DOT holders as well.
Feeling of euphoria gone?
Last week, when the parachain auction hype subsided, the price of DOT has been on a downward trend. Notably, DOT was one of the top performing altcoins in October and early November as it rebounded due to the parachain hype and high spirits.
Fortunately, at the time of writing, the social media volume is with ATH. So if interest rates rise again, could the price also rise?
While social media volume peaked, the weighted social sentiment of DOT saw -0.489, a low score for cryptocurrencies. DOT rallies are often accompanied by a high-weight mentality. So it looks like DOT will need a little bit of market excitement to surpass the $ 50 mark.
In addition, the reduced trading volume also ensured a quieter trading audience. In particular, it can be said that DOT is very popular with retailers and that trading volume remains at a decent level even during the consolidation phase.
A boost from the retail side could also be key to DOT’s near-term price promotions.
New ATH coming?
While the waning euphoria and interest in retailing may sound like a shock, institutional interest in polkadot remains strong. The Polkadot ETF in Europe outperforms Bitcoin, Ethereum accepted by traditional finance, etc., is evidence of the high level of interest institutional players have in the asset.
Although DOT’s price is down 20% versus ATH at press time, its market cap dominance has held up.
Polkadot’s active addresses have increased nearly 55% since November 1, 2021. That growth is likely to continue, although DOT is seeing lower peaks.
The same is true for participants flocking to a network that is supported by good on-chain activity.
One thing that is missing for a perfect polkadot rally is a bitcoin rally. Notably, DOT rallies often closely follow past price movements of BTC. So it looks like the Bitcoin Polkadot rally may continue to drift towards a new ATH.
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According to Ambcrypto