Polkadot (DOT), recognized for its innovation in the crypto space, is facing challenges as its price has fallen from a high of $11.80 in March to its current level, marking a 50% drop. Despite a recent protocol upgrade intended to improve its functionality and scalability, technical analysis suggests that DOTâs price could decline by an additional 13% soon.
Polkadotâs Price Under Pressure
Polkadot (DOT), the leading Layer-0 blockchain, is facing a drop in demand this July, with activity on its Relay Chain and parachains expected to hit their lowest levels this year. This decrease is causing DOTâs price to hover in a narrow range, showing signs of increasing selling pressure.
Despite the price drop, which has seen DOT fall by 2.8% in the last 24 hours to around $5.68, the networkâs on-chain activity remains strong. The daily holder count is at an all-time high of 1.3 million, with 321 new users added recently.
According to Polkadot Subscan, the daily active users have also increased by 19.21%, and on-chain volume has reached a record high.
Furthermore, data from Coinalyze shows that open interest is relatively low, with only a slight increase of 0.12% in the past day. Nevertheless, the Long/Short ratio stands at 2.83, meaning that 73.86% of traders are optimistic and betting on a price increase. This indicates that while the market is currently cautious, there is still a potential for a rebound in the future
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