polka dot [DOT] Fears of slowdown in growth amid market boom

  • The project's development activity declined; however, participants remain optimistic on DOT.
  • Indicators showed DOT price is at risk of dropping below $6,

Development activity has always been an important part of Polkadot [DOT] On multiple occasions, AMBCrypto has pointed out how blockchain has taken the lead on this front.

Something similar happened last week when the development activity metric peaked at 46.93. But the reading started declining on June 28. When development activity increases, it means a project is pushing new features to its network.

However, this falls short when the commitment to polishing the network is not at its highest. At press time, this was the case with Polkadot. But it is important to point out that the protocol has made significant progress during the mentioned week.

Shipping halted amid optimism

For example, Snowbridge, a trustless cross-chain project developed on the network, was launched. There were other notable developments as well. Some involved non-fungible tokens (NFTs), and others were related to asset security.

Growth curves on polka dotGrowth curves on polka dot

Source: Santiment

If this continues in the new week, the project’s development activity could move upwards again. In terms of price, DOT traded at $6.11.

Surprisingly, it was one of the top gainers among the top 20 projects in the market. Moreover, many analysts in the market have shared their views on the cryptocurrency, stating that it was undervalued.

One of them is Michael Van de Poppe. According to Van de Poppe, DOT could follow Ethereum [ETH] He based his arguments on X, and said,

“DOT will likely follow Ethereum in its expansion. This means that Polkadot’s current valuation is extremely low. I have high expectations from the Polkadot ecosystem with all the new segments.”

ETF rumors surface, but DOT doesn't care

Another reason for speculation is that Polkadot is also another project in line for an ETF. For reference, ETF stands for Exchange-Traded Fund. If this happens, the traditional finance sector will be the first to gain exposure to DOT after Bitcoin. [BTC] And the path of Ethereum.

Despite the optimism surrounding the token, AMBCrypto found that the previous bullish momentum was fading. We found this after evaluating the Relative Strength Index (RSI) on the 4-hour chart.

RSI measures momentum. If it increases, it means the momentum is bullish. But when it decreases, it means the momentum is bearish.

At press time, the indicator reading had settled at 52.06, indicating that sellers are booking profits from the recent gains. Moreover, intraday volatility eased.

Polkadot’s falling momentum and volatility

Source: Santiment

Polkadot Read [DOT] Price Forecast 2024-2025

The drop in volatility means that the price will not fluctuate sharply in the short term. If the selling pressure increases, the DOT price may drop below $6.

However, if bullish markets emerge, the price could sustain above $6 or even move towards $7.

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