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Polkadot’s recent price pump and everything you need to know about it

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  • Dot lagged behind Ethereum in terms of weekly contributors to development activities.
  • The NFT space saw growth, but other metrics were bearish.

polka dots [DOT] Moonbeam Networks recently announced some notable integrations that look promising for the Polkadot ecosystem. For example, Bifrost partnered with Moonbeam to leverage their underlying infrastructure to gain immediate market access. The partnership will allow Bifrost to use well-known Ethereum tools, making it easier for them to access the market.

read polka dots [DOT] Price Forecast 2023-24

Polkadot has been in the news for several weeks about its development activities. Even recently, DOT was ranked among the most popular chains by weekly contributors to development activities, trailing only Ethereum.

Interestingly, the sentiment chart shows that Polkadot has also seen growth in its NFT ecosystem. Polkadot’s total number of NFT trades and USD NFRT trading volume both increased last week.

Source: sentiment

All these positive developments are really visible on DOT’s price chart as the price is up more than 7% in the last 24 hours. At the time of writing, DOT was trading at $5.41 with a market cap of over $6.1 billion, according to CoinMarketCap.

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However, can DOT sustain this upward trend, or was it just a result of the current bullish trend that most of the cryptos showed?

Trouble around the corner?

A look at DOT’s on-chain stats provides some clarity on what to expect from the token in the coming days. Despite being behind only Ethereum in contributions to development activity, DOT’s development activity has declined significantly over the past week. In general, this is a negative sign for the network.

DOT’s Binance funding rate also registered a sharp drop, due to lower interest rates from the derivatives market. Nevertheless, DOT’s Binance funding rate is showing signs of recovery at the time of writing by registering an upward trend. In fact, the Dot volume has increased significantly, making the price less likely to experience an unprecedented drop in the coming days.

Source: sentiment

Indicators look better

While most metrics did not support DOT, some market indicators favored buyers as they suggested an increase in price. DOT’s Relative Strength Index (RSI) registered an uptrend and is moving towards the neutral mark, which is likely to turn bullish.

DOT’s on-balance volume (OBV) followed a similar path, moving up slightly. According to the MACD finding, the bears were still profitable in the market, but things could turn around as a bullish crossover was expected soon.

Source: TradingView

Source: news.google.com

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