Most of the market has been rather responsive to Bitcoin’s price action lately. But, even though a lot of altcoins have carved their own niche, the larger market is still waiting for Bitcoin’s cue. Solana, Cardano, and Terra (LUNA) set up independent rallies and made new ATHs while other top alts journeyed on the back of the larger market sentiment.
Polkadot is in the latter category. But, following the market seems to have worked out pretty well for the crypto.
DOT’s rather impressive price rally presented an almost V-shaped recovery. Even though it followed BTC’s price, Polkadot’s rally was much more sustained and straight, when compared to the king coin. The reason behind the same was strong support from traders in DOT’s market.
Better-ranked coins including Bitcoin, Ethereum, and even Cardano (which made another ATH) had lower trade volumes in this rally, compared to their May rallies. On the other hand, DOT saw almost similar trade volumes this time.
Bullish price action
Polkadot has been bullish for more than a month now, with its last four weekly candles closing in the green. Polkadot’s price has risen by more than 170% from the last low of $10.3 around 20 July. On 21 August, DOT managed to test $29 but soon met with some consolidation as $28.5 acted as a strong resistance.
This was a crucial level for DOT as it acted as solid support during the last rally.
Now, at the time of writing, the price action looked more neutral than bullish. However, it was notable that DOT has constantly been making higher lows – a bullish signal and a sign of a sustained rally.
Additionally, the RSI for DOT which seemed to be falling ticked up again, presenting pressure from buyers. So, is Polkadot set to blast above $30 as it sits at $28.2 at press time?
Low development a roadblock?
While on the price front everything looks good, DOT’s metrics seemed to be painting a worrisome picture for the alt. Polkadot’s development activity sat at an all-time low, at the time of writing. In fact, it has consistently declined after peaking on 13 July.
Furthermore, social sentiment, which plays a huge role in rallies, didn’t show much market enthusiasm for Polkadot. Nonetheless, this moderate market sentiment didn’t affect DOT’s ROI which was positive.
Its 7-day ROI v. USDT was +13.85%, for one month it was +102.12%, for three months it stood at +25.42% and had a +599.81% yearly ROI. Impressive, to say the least.
In the case of Polkadot, its traders could overshadow the social and developmental aspects to push its price up. A strong push from the market’s bulls in the near future could easily send its price rallying above $30.