• Polkadot (DOT) enjoyed a 13% price hike in the last seven days, however trader sentiment was mostly bearish.
• Open Interest stabilized at a low level which suggests liquidation has stopped and DOT could be preparing for a rally.
• Polkadot’s development activity and it’s NFT volume was impressive but active users still lagged behind other Layer One blockchains.
Overview of Polkadot
Polkadot (DOT) enjoyed an uptrend in the past seven days, however trader sentiment had turned bearish. Open Interest stabilized at a low level suggesting liquidation may have stopped and DOT might start rallying again soon. Additionally, its development activity and NFT volume were impressive, although active users still lagged behind some Layer One blockchains.
Long/Short Ratio
The long/short ratio is an indicator that serves as a measure of investors‘ expectations. A ratio above 1 indicates bullish sentiment while lower than 1 implies bearishness. In Polkadot’s case, its long/short ratio fell to 0.97 indicating the general sentiment towards the token was mostly bearish.
Open Interest
Open Interest (OI) measures market strength while assessing market sentiment by determining total number of future contracts held on an asset. The OI stability implies that liquidation, largely suffered by shorts may be over indicating that DOT could be preparing for another rally soon.
Development Activity & NFT Volume
At press time, Polkadot’s development activity went down 78%.93 However its NFT volume stood at 1.73 million which went on a non-stop increase between 11th and 24th June hitting 4.82 million implying interest in digital collectibles linked to Polkadot spiked significantly during this period..
Active Users
At the time of writing, DOT’s active users were only slightly above 4,000 which suggested many addresses might not be holding onto their tokens for long and this could affect its price performance negatively going forward
