Polkadot [DOT] had a bad week because the market was mostly down. Polkadot Insider, a well-known X handle for keeping people up-to-date on the blockchain ecosystem, recently tweeted about some major changes happening in the DOT environment.
According to CoinMarketCap statistics, Polkadot’s price dropped 8% in the last week, and it is now trading at $5.81. DOT is still the 15th largest coin, with a market value of more than $8.3 billion.
The falling prices also had an effect on the weighted mood, which showed that most traders were expecting costs to go down. Even so, the token’s social volume stayed high, showing that it is still highly popular in the crypto space.
Polkadot Announces New Connections
The announcement of several new connections coincided with a decline in the token’s price. Astar Network added Band Protocol within the last two days, according to Polkadot Insider.
The blockchain also put out its Polkadot-Decoded 2024 recap future form. It was surprising that, despite these connections, both DOT’s development activity and the number of people who contributed to development activity went down last week.
Analysts used the Polkadot on-chain data daily chart to predict the continuation of the bearish trend. A close look at the Coinglass data showed that DOT’s long/short ratio went up sharply, which is a sign of optimism for the bulls because more people are buying.
Despite the token’s price decline, its open interest remained relatively stable, indicating that the current market trend may not revert for some time. The MACD technical indicator showed a bearish crossing, and the Relative Strength Index (RSI) stayed below the neutral level, which means that things might move slowly in the days to come.
Polkadot’s price hit the lower end of the Bollinger Bands, which is a sign that costs are likely to go up. If bulls take back control, DOT could hit $6 in the next few days, according to data from Hyblock Capital. On the other hand, if the downward trend continues, the coin could fall to a range of $5.6 and $5.5.
