Polkadot [DOT], 86.45% down from its all-time high (ATH), made some gains over the last 24 hours of press time. After dropping to $7.25 on 21 July, DOT has moved up 3.45%. At the time of writing, the coin was priced at $7.66.
However, the recent price uptick does not mean that all is well with the Polkadot. According to data from CryptoQuant, DOT’s volume reduced drastically from the previous day. A 38.24% decline in volume seems to be in contrast with its price rise. Hence, investors may want to drive their attention to it.
So, how come the price of DOT increased, and its volume moved on the opposite end? In fact, the volume went from $592.96 million on 21 July to $364.48 million on 22 July.
While DOT picked up momentum on 21 July, the signals confirmed that bullish or bearish sentiment stayed neutral. Of course, a 3% move up the charts should not get investors too excited.
However, the slow and steady rise from the weekend (18 July) to 20 July could have raised high hopes.
Still, specific indicators beg to differ. The Relative Strength Index (RSI) showed indifferent sentiments, standing at 55.58 at press time. It was the same with the Stochastic RSI, which remained neutral.
With the current state, DOT’s projection to move further upwards or retrace could be a 50-50 chance. While DOT traders may be optimistic in the short term, it could be better if they just watched for a breakout.
Despite the trend, the current movement could be a short-lived bull move. One thing to also look out for would be the moderate stance of DOT between its highest and lowest point of the last few weeks.
Besides the price trend, what position do other metrics take on the present DOT situation?
Santiment data revealed that DOT is not yet in a position to cement a long profitable ride. Certainly, developer activity has improved due to its partnership with a few other networks. However, it did not translate to any celebratory moment even as the market cap increased.
At press time, Polkadot’s market cap was $8.49 billion. However, the level was distant from its position at the beginning of July. Similarly, whale interest has not significantly improved as DOT continues to see new lows in that regard.