Polkadot [DOT]‘s Twitter news handle, Polkadot Insider, posted an interesting update on 23 September 2022. As per the update, development activity contributors performance on the network in the last seven days witnessed an upward trend.
DOT traded as high as $50 in 2021, but the ongoing scenario in the general crypto market, DOT witnessed a sharp price drop. However, with some positive news coming the way of DOT, it makes sense to take a look at its performance.
A look at DOT’s price movement
Taking a long look backward using the daily timeframe, after the period DOT peaked at over $53, it started a downward trend. Looking at the six-hour time frame, DOT was unable to break the $6.64 resistance level in the last six days.
The support level for the same time frame was around the $6.09 region. On the daily timeframe, however, the resistance level largely stood at the $8.09 region with the resistance level on the six-hour timeframe acting as support.
Source: TradingView
The Directional Movement Indicator (DMI) showed the signal line and the minus DI line above 20, indicative of a bearish trend. The Relative Strength Indicator (RSI) line was far below the neutral zone which was also indicative of a bearish trend.
The On-Balance Volume(OBV) indicator depicted an almost flattening line indicating low activities, as can also be seen with the volume indicator. Furthermore, it can be seen that the few times volume spiked, as confirmed by the volume metrics and the OBV, the $8 resistance was broken. All this on the daily timeframe.
Source: TradingView
Development activity on the rise
Despite a disappointing show of price, Polkadot’s popularity and activity levels have increased in ways. Recent Santiment reports showed that development activity witnessed an outstanding rising trend.
Earlier this month, Polkadot’s development activity surpassed that of Ethereum [ETH], Solana [SOL], and Algorand [ALGO]. Furthermore, Polkadot also its intention to support USDT transactions on its network public knowledge.
Source: Santiment
The addition of the largest stablecoin option to additional decentralized finance applications may have a favorable effect on development activities as a result of this news.
With the development of various projects on the Polkadot chain, the DOT token will definitely see more use. This is likely to affect the price action as more demand will be generated from the increased usage.
DOT holders might see a rise to the $11 region if it is able to break the short and long-term resistance.
Source: https://ambcrypto.com/polkadots-bull-run-seems-unlikely-if-dot-continues-relying-only-on-this-activity/