- Like funding, blockchain development activity also declined in the second quarter
- Market indicators appear bullish on DOT, suggesting a further uptrend
Dot [DOT] is known for its development activity and its parachains, which have grown in recent months. A recent tweet from Polkadot Insider even pointed out how funding for its R&D activities has been over the past few years.
However, the last quarter for Polkadot was not the best in terms of price action as it plummeted on the charts. Will the new quarter be better for DOT?
Read Polka dots [DOT] Price prediction 2023-24
A drop in Polkadot’s funding
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 activities has increased. According to the same, funding has increased since the last quarter of 2021. The tweet highlighted that Astar Network, Unique Network and Darwinia received the most funding.
Although the growth was promising, the chart fell in the second quarter of 2023, which is worrying. Not only did funding decline in the last quarter, but the same trend was also observed for blockchain development activity.
Source: Sentiment
Polkadot investors struggled
The blockchain also saw a decline in popularity over the past quarter, as evidenced by low social volume. In addition, sentiment around POINT remained bearish primarily as the weighted sentiment chart remained largely on the negative side.
Source: Sentiment
The price of the token also registered a similar decline. After reaching the highest level of the quarter in mid-April, price action turned bearish. At the time of writing, DOT trade for $5.49 with a market cap of over $6.7 billion. However, the new quarter may look different for the token as the price action has just turned bullish.
For example, according to CoinMarketCap, the price of DOT is up more than 4% in the last 24 hours, which looked promising. POINTDerivatives market demand also surged as Binance funding rates turned green. The 4-week price volatility also increased slightly after a decline, increasing the likelihood of a sustained uptrend.
Source: Sentiment
Realistic or not, here it is DOT market cap in BTC‘s conditions
Will Polkadot survive the uptrend?
Take a look at POINTThe daily chart revealed that the bulls have stepped up their game. The distance between the 30-day exponential moving average (EMA) and the 55-day EMA is narrowing, suggesting that the likelihood of a bullish crossover is high.
The token’s MACD also favored the bulls. However, the Relative Strength Index (RSI) fell slightly, which could be a cause for concern.
Source: TradingView
