- We explore the reasons why DOT is struggling to maintain a bullish trend.
- Polkadot dominance falls to 12-month-lows, but fee paying transactions highlight life signs.
Polkadot [DOT] Since the beginning of this year, it has continued to fall. There have been several attempts to bullishly move the market and there was a sign that the bulls were going to take the lead, but the price has continued its downward spiral.
At the time of publication, DOT was trading at $4.14. This represents a roughly 27% increase from its highs in August. The cryptocurrency started this week on a positive note after displaying RSI divergence that was bullish in recent weeks.
The cryptocurrency is still experiencing similar problems this week, even though it’s too soon to evaluate DOT’s recent attempts to rise. Due to low demand, the cryptocurrency has had a difficult time recovering despite recent gains.
Why DOT struggles to get on a positive footing
The majority of top-performing cryptocurrencies align with the key narratives which have prevailed in the past few months. This trend was not capitalized on by the Polkadot Network. Liquidity has moved elsewhere as a result.
Polkadot is a network that has a dominant performance. The network, for example, showed a dramatic increase in its dominance from October to December of last year.
The price surge was intense during this phase. Since then, the dominance of Polkadot has been reduced from 0.63% down to 0.0%.
Polkadot’s dominant position reached a low of 0.27% at the end August. The price movement of DOT reflects this downward trend. This was evident also in the performance of the network.
The on-chain market was also affected in an environment of declining liquidity.
In March of this year, Polkadot recorded its highest volume on chain in a 12-month period. Real sales peaked at $988.1 million.
In the past few days, Polkadot’s real daily volume was below $50 million. The network’s ability to function has slowed over the past few months. This is reflected in the DOT.
Is there a redemption program for Polkadot & DOT?
The news is not all bad. Polkadot has maintained a decent level of activity this year. Recently, the network has experienced a decent amount of activity. reported The number of transactions involving fee-paying on Polkadot rollsups has doubled in the past 12 months.
You can read more about it here Polkadot [DOT] Price Prediction 2024-2025
DOT, meanwhile, is nearing its lows of October 2023. It is significant because there has been a healthy upswing in demand near these levels.
Investors could see this opportunity as a way to get in on discounted prices.
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Source: ambcrypto.com