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Polkadot up 8% in last 24 hours, thanks to its developer activity, NFT ecosystem growth

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Taking advantage of the relationship with Parachains, Polkadot can expand the capabilities of its ecosystem and reach new heights. Moonbeam Network and its subsidiary Moon River recently teamed up with Bifrost.

There is hope for Polkadot, and here’s a quick article on how crypto is doing: Some big changes on the chain caused DOT’s price to spike. However, according to the indicators, the negative outlook continues.

Based on a recent tweet, the integration not only enabled liquid staking for the GLMR and MOVR tokens, but also dramatically increased developer engagement within the ecosystem.

This, as this tweet confirms, makes Polkadot one of the most active blockchains.

During the same period, sales of NFT increased, which also indicates that Polkadot is making progress in this area. CoinMarketCap recorded an 8 percent increase in the price of DOT over the past 24 hours as a result of these events. However, can DOT keep up this pace?

Optimism remains for Dot

While there is no doubt that the trends in the ecosystem are encouraging, several signs point to investors being misled. We can conclude that the current price action is not a solid rally for DOT from the fact that the MFI numbers are falling.

The coin was previously rejected at $5.43, a price level that the bears have breached in recent days. Not to add Bearish crossover of RSI indicators. A Bollinger Bands compression area also increases rejection.

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The current $5.18 support is a bit fragile as it could allow bears to enter the market and wipe out all of today’s gains for DOT. The EMA ribbon is also flashing red, indicating that shorting DOT is much more profitable than going long.

Image: TradingView

This is reflected on CoinGlass as the cryptocurrency tracker indicates that most investors and traders are shorting the coin rather than going long.

Chaikin’s Money Flow Index is equally bearish with a reading of -0.05, confirming that a positive trend reversal for DOT is unlikely right now, but could happen in the future.

Polkadot price prediction

Surprisingly optimistic ecosystem trends don’t translate into real benefits. That’s the case for DOT, as technical indicators don’t confirm the recent sunshine and rainbows story.

Investors and traders should be careful with Dot. If the price fails to overcome the $5.43 overhead, a retest of the current support at $5.18 is likely.

DOT has a total market cap of $6.12 billion on the daily chart. Featured image from The Coin Republic, charts: TradingView.com

source: newsbtc.com

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