As Polkadot [DOT] feels bearish pressure, development activity to the rescue?

Polkadot outperformed others in terms of development activity. 

However, metrics and market indicators remained in sellers’ favor.

Polkadot [DOT] outperformed its competitors in terms of development activity. On 21 March, popular Twitter account ProofofGitHub revealed that DOT topped the list of cryptos by daily development activity. 

https://twitter.com/ProofofGitHub/status/1638088103222026240?s=20

Read Polkadot’s [DOT] Price Prediction 2023-24

Not only this, but Santiment’s chart also suggested a similar growth as Polkadot’s development activity graph increased considerably over the last seven days. 

Source: Santiment

However, DOT did not correspond to this development, as its weekly chart was painted red. As per CoinMarketCap, DOT’s price declined by over 5% in the last 24 hours, and at the time of writing, it was trading at $6.12 with a market capitalization of more than $7.1 billion. 

This is what went wrong 

While most of the cryptos enjoyed the consequences of a bullish market last week,  DOT did not gain much momentum. The Bollinger Bands revealed that DOT’s price was in a less volatile zone, contributing to its dormant price action.

Moreover, the blockchain’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered declines, which was a bearish development. However, the future might look good for DOT as its Money Flow Index (MFI) recently registered an uptick. The MACD revealed a bullish advantage in the market, which can help the token increase its price. 

Source: TradingView

Is a trend reversal possible for Polkadot? 

While Polkadot’s price action slowed down last week, quite a few developments happened over the last few days that had the potential to initiate a new bull rally. For example, Nova Wallet’s latest update introduces support for Polkadot OpenGov agile delegations on Kusama, so it’s easier than ever to delegate your on-chain voting power to another account.

https://twitter.com/Polkadot/status/1637796985716502528?s=20

Moreover, Fearless Wallet, which is a browser extension made for Polkadot and Kusama, released its browser extension on the Chrome Web Store. Apart from this, the KYVE Network also announced that it has fully integrated with Polkadot. 

Realistic or not, here's DOT market cap in BTC's terms

What the metrics suggest

Though the developments looked optimistic for the Polkadot ecosystem, its on-chain performance still favored the bears. DOT’s Binance funding rate registered a sharp decline on 21 March, reflecting its decreased demand in the derivatives market. Polkadot’s social volume also declined over the last week, which indicates less popularity in the crypto space.

However, it was interesting to note that despite the price decline and other negative metrics, DOT’s NFT space witnessed growth, which was evident from its total number of NFT trade counts. 

Source: Santiment

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