Polkadot (DOT) price analysis: $DOT trades below $7 as development activity declines.
Polkadot (DOT) fell below $7 again after showing indications of recovery earlier this week, failing to achieve a major resistance level.
Polkadot failed to break over the 20-day SMA, a crucial resistance level, and is now trading below $7. $DOT showed early indications of recovery this week, following a strong weekend in which the coin traded above $7. Polkadot also observed a decrease in developer activity, likely exacerbating its negative trajectory.
$DOT Loses Partial Recovery.
Polkadot ($DOT) showed indications of revival just a week ago, trading at $7.11 following a great weekend. $DOT encountered substantial resistance and fell back into the red on Monday. Things turned bullish during the Tuesday trading session as buyers grabbed control late on Monday, with the price rising 4.62% to $7.47. However, sellers took control over the next two days, bringing the price down below $7.00.
The chart below depicts $DOT’s ongoing volatility between $6 and $7.
Polkadot Developer Activity Declines.
Data from Coin98Analytics earlier this week suggested that developer activity on Polkadot has decreased. The data displays a list of blockchains ranked based on Their developmental activities. Polkadot registered 827 developers the week prior, with over 5,000 weekly development commits.
Weekly Commits and Active Developers on Popular Blockchain Platforms.
pic.twitter.com/z7fLAfqGoa
Coin98 Analytics (@Coin98Analytics) – April 26, 2024
Polkadot’s data is not necessarily low, however it is lower when compared to other blockchains like Ethereum and BNB Chain. Ethereum had over 2,000 weekly developers who executed over 19,000 commits, whereas BNB Chain had over 6,000 weekly commits.
In Other News This week brought various developments, including Polkadot’s involvement. Velocity Labs unveiled a fiat-to-crypto onramp leveraging the Ramp Network and the Asset Hub. The onramp enables Ramp to service any chain parachain inside the Polkadot ecosystem.
Asset Hub is a system parachain that serves as the “home base” for assets in the larger Polkadot ecosystem. The primary function of Asset Hub is to facilitate the production, administration, and use of assets within the Polkadot ecosystem.
Polkadot was trading at $6.85 as of this writing, down 3.49% in the previous seven days.
Disclaimer: This content is provided solely for informational purposes. It is not given or intended for use as legal tax, investment, financial, or other advice.