Polkadot took the top spot on the list of cryptocurrencies in terms of monthly revenue
However, the statistics and indicators suggested that perhaps the investors should focus more on profit

Dot [DOT] was again in the spotlight, this time not because of its development activity but because of its sales performance. According to Token Terminal, Polkadot topped the list of blockchains in terms of revenue generated on Dec. 11, as DOT’s monthly revenue increased by nearly 36%.

However, despite this rise, DOT’s investors couldn’t celebrate for long as the price fell dramatically over the past week. CoinMarketCaps data revealed that DOT was down 10% in the past seven days.

At the time of writing, it was trading at $5.13, with a market cap of over $5.8 billion.

Read Polka dots [DOT] Price prediction 2023-2024

Winter can get worse

POINT managed to maintain its popularity in the crypto space as it was on the list from most wanted cryptos on LunarCrush. While DOT remained popular, the winter days could be longer, as suggested by the blockchain’s on-chain metrics.

For example, DOT’s positive sentiment plummeted after peaking. This indicated the diminishing investor confidence in the token. from LunarCrush data further revealed that DOT’s volatility had also risen significantly over the past week, further increasing the likelihood of a sustained downtrend.

Source: Sentiment

However, the good news was that despite the sharp drop in DOT’s Binance funding rate, the chart registered an increase. This suggested higher interest from the derivatives market. Last week, POINTThe funding rate took a hit and fell significantly, indicating the opening of several short positions.

As a result of this development, most short traders were severely liquidated. Aside from the funding rate, another positive update was that DOT development activity gained and increased momentum during the week.

Can the indicators save Polkadot?

DotThe daily chart once again favored the sellers as most market indicators suggested further price declines. The Exponential Moving Average (EMA) ribbon revealed that the 20-day EMA rested below the 55-day EMA, indicating a bearish edge.

In addition, both the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered down ticks, further reducing the likelihood of a breakout to the north.

Source: TradingView

This post Are Polkadot traders on thin ice given DOT’s ongoing price action

was published first on https://ambcrypto.com/are-polkadot-traders-standing-on-thin-ice-given-dots-ongoing-price-action/


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