Polkadot (DOT), on November 4 55 dollarsAfter reaching a new ATH (all-time high) with . 47 dollars The DOT price has experienced a rapid pullback looking at the overall picture. While according to technical data, DOT won’t be able to easily catch a new ATH anytime soon, there have been promising developments for long-term investors.
Over the past week, the price of DOT has also been in a downtrend as parachain auctions started to decline. DOT was one of the best performing altcoins in all of October and early November, behind the parachain trend.
Luckily for DOT, ATH levels are starting to appear right now after social volume has peaked. But will the price really move up as interest in the DOT starts to rise?
Social volumes peaked, while DOT’s weighted ‘social sentiment’ recorded a score of -0.489 (a low score for crypto). Looking at the history of DOT rallies, these rallies are often accompanied by a ‘high-weighted sentiment’, but this time it seems lacking. For the DOT to break above the $50 level, it seems like ‘some excitement’ is needed on the community side.
In addition, the decrease in trade volume has created a calmer ‘retail crowd’. In particular, DOT did not become a favorite of retail investors, so to speak, and trading volumes managed to maintain good levels even during the ‘consolidation’ stages.
The key to DOT’s short-term price action could be pressure on the retail side.
While waning enthusiasm and retail interest may sound a little ‘stray/bummer’, institutional interest in Polkadot is still considered strong. Polkadot ETFs in Europe outperform even Bitcoin. Ethereum adoption by traditional finance etc. as evidence of institutional interest in the asset.
Additionally, the DOT’s price has maintained its market cap dominance position well, despite having dropped 15% from its ATH at the time of writing.
However, Polkadot active addresses have increased by almost 55% since November 1, 2021. This growth is likely to continue despite DOT posting lower levels.
After breaking lower since Nov 10, DOT has managed to break out of the critical $45.56 level, which has acted as an important support/resistance in the past.
However, one thing missing for a good rally seems to be the Bitcoin rally right now. The fact that past DOT rallies follow BTC rallies proves this. Therefore, BTC’s recovery could be a possible rally for DOT.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.