Polkadot Price Watch: What A Drop In This Key Area Can Mean For DOT?

Christian Encila

2 years ago

3 mins read

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Polkadot (DOT) – which is seen to be on a winning streak in terms of social media metrics and development activity – has been on a retreat recently.

DOT social media metrics nosedives
Polkadot’s decline in developer activity could leave a bad taste in the mouth of investors
DOT’s NFT volume off to as high as 1.64 million on September 24

Is this sudden drop in both metrics just a temporary hiccup or could be a warning signal to investors?

Judging by the chart below, DOT price was seen to have nosedived in terms of development activity in the past few days. It’s surprising as Polkadot has been outpacing other cryptocurrencies over the past week but seems to be losing steam now.

DOT Social Volume Down, Bearish Movement Looms

The reduction in terms of development activity hints at the lack of developers working on Github. Evidently, this lack of development activity could leave a negative impression on investors.

DOT’s social volume has capsized which could likely trigger an enhanced bearish movement. Notably, there is also a drop in DOT’s social media engagement in the past few days. The social metrics of Polkadot are seen to have nosedived by 12.6% as seen in the past month. More so, its weighted sentiment has also dropped below 0. These on-chain metrics show the increasingly negative sentiment circling DOT.

Despite DOT looking intensely bearish, the crypto has seen a massive improvement in terms of NFT. With that being said, DOT’s NFT volume has grown a lot from $364,250 as spotted on August 26 to as high as $1.64 million on September 24.

According to CoinMarketCap, DOT price has spiked by 4.17% or trading at $6.50 as of press time.

Chart: Santiment

Polkadot Collaborates With Tether, Others

Polkadot is also ramping up in terms of collaborations such as with Tether. On September 23, Tether announced that they will be rolling out USDT right on Polkadot. These collaborations are in pursuit of the legalization of DOT’s operations.

More so, Polkadot also recently adopted Chainlink allowing Polkadot projects to employ the data price feed of Chainlink. On the other hand, even if these collaborations are bound to fuel growth and scalability for DOT, still the price could go down in the short term.

On the brighter side, DOT’s declining volume which has dropped by 82.34% in the past week signifies that DOT’s price could be bound for immediate recovery.

DOT total market cap at $7.28 billion on the daily chart | Source: TradingView.com

Featured image from Cryptopolitan, Chart: TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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