- Polkadot’s (DOT) development activities and blockchain activities show a mixed performance as the price struggles to breach a crucial resistance level at $7.4.
- According to an analyst, the asset is getting ready for a bullish run as it presents a buying opportunity to investors as it did six months ago.
Polkadot (DOT) had a disastrous month in April, declining by 22% and slipping below the $6 support level. As expected, this had a drastic impact on its social metrics including Weighted Sentiment, falling below the neutral levels across the various market indicators and threatened by an extensive bearish phase triggered by the broad market bloodbath. Within the month, its overall development activity which usually remains high saw a drastic decline.
Data shared by Coin98 Analytics disclosed that Polkadot had 827 developers and more than 5000 weekly code commits. While these numbers were not low, they showed little progress compared to the other blockchains. Ethereum, for instance, had 2000 weekly developers and over 19,000 commits. BNB Chain also recorded more than 6000 weekly commits with both Polygon (MATIC) and Optimism (OP) outshining Polkadot.
However, there was a high network activity on the blockchain with Polkadot tweeting to have achieved a new all-time high for monthly active accounts since the start of 2022 when the parachains were first launched. A quick review by CNF disclosed that Moonbeam and DOT were the top two highest contributors to this achievement. Unfortunately, the on-chain activities have taken a nosedive in May as the daily active addresses witnessed a considerable decline last week.
More on the Polkadot (DOT) Network Activities and Price Analysis
According to reports, there were only 44,000 distinct addresses as of April 26, representing a 60% decline from the 112,000 fresh requests recorded in March. As of the period under review, only 2.2 million active addresses were detected, indicating a decrease in network activity within the month. Also, the month saw 101,000 new addresses using these networks within the month compared to the 1.52 million new addresses in March.
With this happening, the blockchain’s daily transactions were severely affected. As of press time, the daily active addresses stood at 5.4k with the overall daily transactions declining to 40k.
At the time of writing, DOT was trading at $7 after surging by 3% in the last 24 hours and 0.6% in the last seven days. However, its monthly, 90 days, and year-to-date returns remain in the dip.
A look at its daily chart discloses that the asset failed to breach its support level at $7.4 on multiple occasions. Currently, its Chaikin Money Flow (CMF) and Relative Strength Index (RSI) have registered a sharp decline, indicating a possible bearish extension. However, a renowned entrepreneur identified on X as Ted believes that DOT is rather gearing up for a massive uptick. According to CRYPTOWZRD and Jesse Olson, DOT can hit $10, and proceed to $15 in a few months once it crosses the $7 mark.
Above $9.60, we get another bullish impulse towards $15.80. Wave five is coming stronger… and most are going to miss it.
Jesse Olson believes that the current condition of the asset presents a buying opportunity as it did six months ago. At that time, DOT was trading below $5 but surged to hit $12 in mid-March.
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