- DOT was up by more than 36% in the last seven days.
- A few market indicators hinted at a possible price correction.
The year 2023 is coming to an end, and the Polkadot [DOT] ecosystem remains active as several new developments have taken place.
While the development around the blockchain increased, DOT’s price action also turned bullish as it registered double-digit growth.
Polkadot’s development activity remains high
AMBCrypto’s examination of Santiment’s data revealed that development activity around the blockchain remained high in the festive season.
This was evident from the DOT’s development activity graph, which remained high until 25th December.
Source: Santiment
Polkadot Insider, a popular X (formerly known as Twitter) handle, recently posted a tweet highlighting a few new developments that might have been the reason behind DOT’s high development activity.
As per the tweet, DOT is ready to integrate with the game engine behind Pokémon Go and Call of Duty Mobile through a collaboration between Parity Technologies and Unity of Games.
Apart from that, Polkadot’s Parachain Crust network has also forged a strategic partnership with Algorand.
The #Polkadot and #Kusama ecosystems are growing impressively with great news on a daily basis
#PolkadotInsider is pleased to bring you the recap of highlight events in the @Polkadot and @kusamanetwork ecosystems in the last 72hrs
Check it out
#DOT #KSM pic.twitter.com/n1H25ksRx7
— Polkadot Insider (@PolkadotInsider) December 23, 2023
Polkadot bulls are not stopping!
Amidst this, DOT’s price action gained bullish momentum. According to CoinMarketCap, DOT was up by more than 35% in the last seven days.
In fact, in the last 24 hours alone, Polkadot’s value surged by over 6%. At the time of writing, DOT was trading at $9.36 with a market capitalization of over $11.8 billion, making it the 11th largest crypto.
However, Ali, a popular crypto analyst, recently pointed out a possible sell signal. As per his tweet, A metric flagged a sell signal on DOT’s weekly chart as it hit a key resistance at the 100-EMA.
#Polkadot | The TD Sequential indicator flags a sell on the weekly chart for $DOT, just as it hits a key resistance at the 100-EMA.
This could lead to a spike in profit-taking, potentially driving #DOT down to $7.50. pic.twitter.com/3emT3apHiR
— Ali (@ali_charts) December 24, 2023
Therefore, to see whether a sell-off took place, AMBCrypto had a look at Hyblock Capital’s data.
As per our analysis, DOT witnessed a hike in liquidation near the $9.5 zone. Because of the hike in liquidation, the token’s price did witness a slight price correction as it failed to go above $9.5.
Source: Hyblock Capital
Read Polkadot’s DOT] Price Prediction 223-24
AMBCrypto then took a look at Polkadot’s daily chart to see whether a price downtrend was likely. DOT’s MACD remained in the buyers’ favor as it displayed a bullish crossover.
However, its price touched the upper limit of the Bollinger Bands. Additionally, its Chaikin Money Flow (CMF) registered a downtick, suggesting the possibility of a price downtrend.
Source: TradingView
