After showing signs of recovery early this week, Polkadot (DOT) traded below $7 again as it failed to reach a critical resistance level.
Polkadot failed to move past the 20-day SMA, a key resistance level and is back trading below $7. $DOT showed early signs of recovery early this week after a successful weekend saw the coin trading above $7. Polkadot further saw a decline in developer activity, possibly fueling its downward trend.
$DOT Looses Partial Recovery
A mere week ago, Polkadot ($DOT) showed signs of recovery, trading at $7.11 after a successful weekend. $DOT faced significant resistance and traded back in the red on Monday. Things took a bullish turn during the Tuesday trading session after buyers took control late on Monday, with the price recording an increase of 4.62%, which settled at $7.47. Sellers, however, took control over the following two days, pushing the price back under $7.00.
The chart below shows $DOT’s continued oscillation between $6 and $7.
Polkadot Developer Activity Declines
Data from Coin98Analytics earlier this week showed developer activity on Polkadot had declined. The data shows a list of blockchains ranked according to their development activity. Polkadot registered 827 developers the week before, witnessing over 5,000 weekly code commits.
Weekly Commits & Active Devs on Popular Blockchain Platforms pic.twitter.com/z7fLAfqGoa
— Coin98 Analytics (@Coin98Analytics) April 26, 2024
While Polkadot’s data is not low per se, it is lower compared to other blockchains, such as Ethereum and BNB Chain. Ethereum saw over 2,000 weekly developers executing over 19,000 commits, while BNB Chain’s weekly commits were over 6,000.
In Other News
This week saw several developments, including Polkadot’s involvement. Velocity Labs announced a fiat-to-crypto onramp using the Ramp Network through the integration of the Asset Hub. The onramp allows Ramp to service any chain parachain in the Polkadot ecosystem.
Asset Hub is a system parachain often described as the “home base” of assets in the broad Polkadot ecosystem. Asset Hub’s main function is facilitating the creation, management, and use of assets in the Polkadot ecosystem.
At the time of writing, Polkadot traded at $6.85, down 3.49% in the past seven days.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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