Like funding, Blockchain development activity also declined in the second quarter. Market indicators appear to be bullish on DOT, suggesting further uptrend.
Polkadot is a public Blockchain network whose main objective is to serve as a connection point between different block networks. The project dates from the end of 2016 when Gavin Wood, co-founder of Ethereum and founder of Parity Technologies officially presented the founding document (White Paper) of said initiative.
DOT has been noted for its development activity and its chain guards, which have grown in recent months. In fact, a recent Polkadot Insider tweet pointed out how its R&D funding has been in recent years. However, Polka dot’s last quarter was not the best in terms of price action, as it slumped on the charts.
Polkadot Insider, a popular Twitter handle that posts updates related to the Polkadot ecosystem, recently revealed in a tweet how funding for the network’s R&D activity has increased. According to the same, the funding has registered an increase since the last quarter of 2021. The tweet highlighted that Astar Network, Unique Network and Darwinia received the most funding.
However, while the growth was promising, the graph declined in the second quarter of 2023, which has been concerning. Not only did funding decline in the last quarter, but the same trend was also seen in Blockchain development activity.
Polkadot Investors Have Had a Hard Time
The Blockchain also experienced a decline in popularity in the last quarter, which was evident by its low social volume. Additionally, sentiment around DOT remained mostly bearish, as the sentiment-weighted chart remained mostly on the negative side.
The price of the token registered a similar drop. After reaching the highest level of the quarter in mid-April, the price action turned bearish. At the time of writing, the DOT was trading at $5.49 with a market capitalization of over $6.7 billion. However, the new quarter may look different for the token as its price action has just turned bullish.
According to CoinMarketCap, the DOT price is up more than 4% in the last 24 hours, which looks promising.
Demand for in the derivatives market increased, when its funding rate from Binance turned green. Its 4-week price volatility also rose slightly after a dip, raising the chances of a sustained uptrend.
Will Polkadot Maintain the Uptrend?
A look at the daily DOT chart revealed that the bulls have been stepping up their game. The distance between the 30 day EMA and the 55 day EMA is narrowing, which suggests that the chances of a bullish crossover are high.
The MACD of the token was also in favor of the bulls. However, its Relative Strength Index (RSI) dipped slightly, which could be cause for concern.
According to Changelly, on the basis of the Polkadot price fluctuations in early 2023, the average DOT price is expected to be $4.94 in July 2023. Its minimum and maximum prices can be expected at $4.41 and $4.41. $5.47, respectively.
Additionally, CrytoPredictions forecasts that the DOT price for today (04.07.2023) will be in the range of $4,588 – $6,746. The Polkadot price is forecast to end today at 5,397.
By Audy Castaneda
