A popular cryptocurrency analyst has recently suggested that Polkadot (DOT) could see its price drop by more than 20% from its current levels after pointing to a bearish signal showing on its price chart.
In a post shared with their over 37,000 followers on the microblogging platform X (formerly known as Twitter), cryptocurrency analyst Ali Martinez revealed that the TD Sequential indicator is flagging a sell signal on DOT’s weekly chart after the cryptocurrency hit its 100-EMA.
The TD Sequential is a technical analysis indicator created by financial market analyst Thomas DeMark. It is used to identify potential trend reversals in asset prices. The TD Sequential is based on the idea that market trends tend to move in a series of upward or downward price movements called “countdowns.”
The indicator uses a series of numbers and letters to signal potential trend reversals, and according to Martinez suggests that the price of DOT is going to drop to $7.5 amid a period of profit taking.
Polkadot, according to CryptoCompare data, is currently trading at $9.1 after surging from a $3.6 low seen earlier this year. The cryptocurrency’s all-time high was notably around the $50 mark and was seen back in 2021.
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Polkadot is often described as the “blockchain of blockchains,” as its users can launch and operate their own blockchains on top of Polkadot. The main Polkadot network doesn’t support smart contracts, but the networks built on top of it can support them.
The cryptocurrency often leads when it comes to developer activity, but was recently surpassed by smart contract platform Cardano, according ot data from on-chain analytics firm Santiment.
The term “development activity” refers to the amount of work completed by a cryptocurrency project’s developers on the project’s public GitHub repositories within the past 30 days.
Unlike other measures, Santiment’s metric focuses on “events” rather than the total number of commits. Events encompass various actions taken on GitHub repositories, such as pushing a commit, forking a repository, or creating an issue.
This approach provides a more accurate representation of the developers’ actual work, as it prevents duplication or inaccuracies that may occur when measuring development activity solely by commits.
Featured image via Unsplash.
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- Source: https://www.cryptoglobe.com/latest/2023/12/polkadot-price-prediction-dot-could-plunge-20-after-bearish-signal-analyst-says/
