- DOT’s stochastic was overbought at the time of writing.
- However, metrics and other indicators looked bullish.
On 7 January, Polkadot [DOT] tweeted about its achievements for the week. The blockchain network celebrated its best performance by price in the last seven days with a 7.2% growth, a feat that surpassed many large chains.
Among the top blockchains, #Polkadot had the best performance by price in the last 7 days with 7.2% growth, surpassing many large chains 👀
— Polkadot Insider (@PolkadotInsider) January 7, 2023
Polkadot’s growth was also clear considering CoinMarketCap’s data, as the token’s price increased by 8% in the last week. At press time, it was trading at $4.68, with a market capitalization of over $5.3 billion.
However, the table might turn soon as CryptoQuant’s data revealed that DOT’s stochastic was in an overbought position, suggesting a trend reversal soon.
Read Polkadot’s [DOT] Price Prediction 2023-24
What’s working in DOT’s favor?
Apart from the price action, DOT also passed a new proposal named Referendum 91. The proposal’s main purpose was to lift the limits imposed on the nomination pools, which inhibited the number of nomination pools to 64 in Polkadot. This will help prevent any potential risks with the launch.
A look at Santiment’s chart revealed that the metrics were also working in DOT’s favor, as they suggested a continued uptrend in the coming days.
For instance, DOT’s Binance funding rate remained relatively high, indicating high demand in the derivatives market. To no surprise, DOT’s development activity also increased, which was a positive signal for a blockchain.
DOT’s positive sentiments also remained high, which is a signal of the community’s trust in Polkadot. The token also made it to the list of the most searched tokens during the early days of 2023 on LBank.
How many DOTs can you get for $1?
Polkadot bulls are here to stay longer
Surprisingly, not only the metrics, but the market indicators also looked pretty bullish for Polkadot. The Relative Strength Index (RSI) registered an uptick and was near the neutral mark. The Chaikin Money Flow (CMF) also witnessed a surge, increasing the chances of a continued price surge.
DOT’s Moving Average Convergence Divergence (MACD) displayed a bullish crossover, suggesting a buyer’s advantage in the market. Nonetheless, the Exponential Moving Average (EMA) Ribbon indicated that the bears still had the upper hand as the 20-day EMA was resting below the 55-day EMA.