Journalist
Posted:
- DOT was up by nearly 5% in the last 24 hours, along with a rise in volume.
- Social metrics remained high, but a few indicators turned bearish.
Polakdot [DOT] recently witnessed a major hike in its revenue, which meant that the blockchain’s usage increased. Interestingly, Avalanche [AVAX] also registered a similar increase not long ago, after which the token’s price skyrocketed. Will DOT follow a similar trend?
Polkadot’s captured value is rising
Polkadot Insider posted a tweet on 20th December highlighting the fact that Polkadot ranked second on the list of blockchains with highest revenue rate in the last seven days.
Kusama [KSM], Polygon [MATIC], and Solana [SOL] also made it to the top 5.
While DOT sat in the second spot, AVAX took the top position on the list. A hike in revenue also means that there must have been a rise in network’s fees.
AMBCrypto reported previously that AVAX witnessed a surge in its generated fees, as the value touched $3.5 million. Soon after that, AVAX became one of the only top coins that registered double-digit gains as its price rallied by over 30% at the time.
Therefore, AMBCrypto checked Polkadot’s status to see whether it was also following a similar trend. Our analysis of Token Terminal’s data revealed that DOT’s revenue and fees spiked sharply on 16th December.
Source: Token Terminal
DOT’s price is rising
Like AVAX, DOT’s value also registered an uptick. According to CoinMarketCap, DOT was up by more than 5% in the last 24 hours alone. At the time of writing, Polkadot was trading at $7.16 with a market capitalization of over $9.3 billion.
The token’s trading volume also surged along with its value, which was bullish.
Sentiment around the token remained broadly positive as its weighted sentiment spiked a few times last week. DOT’s social volume also remained high.
Additionally, DOT remained in demand in the derivatives market, as evident from its green Binance funding rate.
Source: Santiment
To understand whether DOT will be able to sustain this price uptick, AMBCrypto checked the token’s daily chart. As per our analysis, DOT’s MACD displayed a bearish crossover, despite the price uptrend.
Read Polkadot’s [DOT] Price Prediction 2023-24
Its Money Flow Index (MFI) went down from the overbought zone and was headed towards the neutral mark, increasing the chances of a price downtick in the days to follow.
Nonetheless, Polkadot’s Chaikin Money Flow (CMF) rested well above the neutral mark, suggesting that the northbound price movement might continue further.
Source: TradingView
