Polkadot, after hitting an ATH of $55 on 4 November, has fallen significantly since, with the crypto buying and selling at $45 at press time. The truth is, the eighth-ranked altcoin was down 13.18% over the previous week. Nonetheless, with optimism round one other ATH seemingly fading away, there have been additionally some indicators of aid for DOT HODLers.
Muted euphoria?
Over the previous week, with the hype of the parachain auctions fading away, DOT’s worth has been on a downtrend. Notably, DOT was one of many best-performing altcoins over the month of October and early November because it rallied on the again of parachain hype and the asset’s worth rode on excessive social sentiment.
Fortunately, on the time of writing, social volumes had been seeing ATH ranges. So, with curiosity stirring again up, may the worth see an upward transfer too?
Supply: Sanbase
Whereas social volumes peaked, DOT’s weighted social sentiment famous a determine of -0.489 – A low rating for the crypto. DOT’s rallies are normally accompanied by a excessive weighted sentiment, with the identical lacking this time. So, looks like DOT wants some market euphoria for a push above the $50-level.
Moreover, the decreased commerce volumes too introduced a calmer retail crowd. Notably, DOT’s been a retail favourite, so to say, and its commerce volumes maintained respectable ranges even amid its consolidation phases.
A push from the retail aspect too may very well be key to DOT’s near-term worth motion.
New ATH on the horizon?
Whereas diminishing euphoria and retail curiosity sound like a bummer, institutional curiosity in Polkadot continues to be holding sturdy. Polkadot ETFs in Europe outperforming Bitcoin, Ethereum being embraced by conventional finance, and so forth. are proof of excessive curiosity from institutional gamers within the asset.
Moreover, regardless that DOT’s worth was down 15% from its ATH at press time, its market cap dominance held its place nicely.
Supply: Messari
That being mentioned, lively addresses for Polkadot have jumped by virtually 55% since 1 November 2021. This progress is prone to proceed, regardless of DOT recording decrease highs.
The identical is indicative of contributors flocking to the community backed by respectable on-chain exercise.
Supply: Messari
DOT, after making decrease highs since 10 November, lastly bounced off the essential $45.56-level which has acted as a major help/resistance up to now.
Nonetheless, one factor that’s lacking for an ideal Polkadot rally is a Bitcoin rally. Notably, DOT’s rallies have usually adopted BTC’s worth actions up to now. So, looks like Bitcoin’s restoration may additional push Polkadot in direction of a brand new ATH.
