• About
  • Contact
  • Privacy Policy
  • Terms and Conditions
Monday, June 23, 2025
The VR Soldier
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases
No Result
View All Result
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases
No Result
View All Result
The VR Soldier
No Result
View All Result

Polkadot Party Time or Price Pullback? Experts Weigh In 

Jordan Avery by Jordan Avery
May 18, 2024
in News
Reading Time: 3 mins read
0
_Polkadot DOT Altcoin Analysis On-chain Metrics Technical Indicators Cryptocurrency Trends 1
Share on TwitterShare on Facebook

Despite the impressive jump from $6.4 to $7.1, Polkadot (DOT) uptrend is still not sustainable. In addition, using on-chain metrics and technical indicators, we figure out what to expect from altcoin dynamics in the near future.

Polkadot (DOT) Charts Signal Potential Price Correction

The Ichimoku Cloud is a technical analysis tool that consists of several indicators. It provides insight into potential support and resistance zones and is also used to predict the future trend. However, the chart below shows that DOT has broken above the 4-hour Ichimoku cloud. A return to it may signal a trend reversal. On the daily timeframe, the altcoin price is approaching the lower boundary of the cloud.

DOT /USDT chart . Source: TradingView
DOT /USDT chart . Source: TradingView

On-chain data, meanwhile, is showing alarming trends. The number of new Polkadot addresses has dropped significantly, hinting at a loss of investor interest in the asset.

Number of new DOT addresses . Source: IntoTheBlock

Number of new DOT addresses . Source: IntoTheBlock

However, a sustained decline in the number of new addresses can impact the overall health and expansion of the ecosystem. In the context of Polkadot, this decline could mean several things:

-Declining activity among existing users due to a lack of interesting projects, updates, or incentives to maintain engagement.

-Growing bearish sentiment in the broader market.

-Challenges in maintaining the project’s unique value proposition relative to other solutions.

The chart below shows the 7-day moving average (7DMA) of daily transactions on the network. After reaching a peak in January 2024, their numbers have been steadily declining.

Number of new addresses in the Polkadot relay chain (7DMA). Source: IntoTheBlock
Number of new addresses in the Polkadot relay chain (7DMA). Source: IntoTheBlock

A drop in activity often correlates with a decrease in overall network usage, and as a result, a decrease in demand for the native token.

What to Expect from (DOT) Price?

At the writing time, Polkadot price is trading at $7.16 according to coinmarketcap. However, Polkadot showed an uptrend, breaking above the 4-hour Ichimoku cloud. This technical pattern indicates potential bullish momentum. However, traders should be careful as a pullback to the cloud on the 4-hour timeframe could signal a trend reversal.  polkadot-Altcoin

coinmarketcapDOT’s recent uptrend is heavily influenced by broader market movements, particularly the rise in the price of Bitcoin. In addition, the dynamics of the altcoin were greatly facilitated by speculative activity around derivative contracts. Moreover, while technical indicators point to bullish momentum, on-chain data hints at potential risks. Declines in the number of active addresses and transaction volume signal that investors are choosing to stay on the sidelines.

Tags: Altcoin AnalysisCryptocurrency TrendsDOTon-chain metricsPolkadottechnical indicators
Previous Post

Cardano (ADA) May Fall Short of $0.50, Healix Protocol has a Vision for a Decentralized Future of Healthcare

Next Post

WIF Selloff Alert: Dogwifhat Plummets On Various Factors

Related Posts

BTC Defends $100,000 Support Amid Iran Conflict, Is a Major Rally Coming?
Market Analysis

BTC Defends $100,000 Support Amid Iran Conflict, Is a Major Rally Coming?

June 22, 2025
Bitcoin $103K Support Is Shaking, Will the Bears Get Burned
Market Analysis

Bitcoin $103K Support Is Shaking, Will the Bears Get Burned?

June 21, 2025
Featured

Dogecoin Price Faces Breakdown

June 20, 2025
Featured

CZ Warns of Deepfake Scams

June 20, 2025
Bitcoin Price Survives Israel-Iran Tensions, Hack, and $200B Meltdown
News

Bitcoin Price Survives Israel-Iran Tensions, Hack, and $200B Meltdown

June 19, 2025
Solana ETF Incoming? What Bloomberg’s 90% Prediction Means for Investors
News

Solana ETF Incoming? What Bloomberg’s 90% Prediction Means for Investors

June 17, 2025

Press Releases

Bitcoin Price Survives Israel-Iran Tensions, Hack, and $200B Meltdown
News

Bitcoin Price Survives Israel-Iran Tensions, Hack, and $200B Meltdown

by Alex Mercer
June 19, 2025

Introduction Bitcoin has seen plenty of drama over the years, but this time, even with war looming and a cyberattack...

Read more
What you will get:  Simple steps to start trading cryptocurrencies like Bitcoin and Ethereum How to choose a reliable crypto exchange with low fees and strong security Key tips to read crypto price charts and manage trading risks How to stay updated with market-moving news and practice safely before investing Introduction Cryptocurrency trading has exploded in popularity as an easy way to earn online. With simple guidance you can start trading Bitcoin Ethereum and other altcoins using your phone or computer. This guide gives clear steps for beginners. What Is Crypto Trading and How Does It Work Crypto trading is buying and selling digital currencies like Bitcoin Ethereum Cardano or Solana to make a profit. You buy when prices are low and sell when they go higher. There are two main trading types: Spot trading: You own actual coins. Derivatives trading: You trade based on price movements without owning coins. Spot trading is perfect for beginners because it’s more straightforward and less risky. Step 1 Choose a Reliable Crypto Exchange Select a trusted crypto exchange. Popular beginner-friendly options: Binance: Low fees and many altcoins Coinbase: Easy for beginners with strong security Kraken: Great support and euro compatibility Bybit: Simple interface with spot and futures Look for: Easy sign up and verification Strong security (2FA, cold storage) Low trading fees and fast euro or fiat deposits Wide selection of coins and high volume Step 2 Learn Crypto Chart Reading Reading price charts will improve your crypto trading success. Key concepts: Trend lines: Overall up or down movements Support levels: Prices where value tends to bounce up Resistance levels: Prices where value tends to slow or reverse Start with basic charts like candlestick charts. Many platforms like Binance and Kraken offer built-in guides. Step 3 Manage Risk and Use Stop Losses Crypto prices are very volatile and can change fast. Protect your investment by: Investing only what you can afford to lose Using stop-loss orders to sell automatically at a set lower price Not risking more than 1–2% of your portfolio on any trade This risk management helps you stay in the game long term. Step 4 Stay Updated with Real-Time Crypto News Crypto markets respond instantly to news. Use reliable sources like Vr Soldier, CoinDesk, CoinTelegraph and The Block. Track: Bitcoin ETF decisions New coin listings on exchanges Regulatory changes Major partnerships and developments Following crypto news helps you predict good entry and exit points. Step 5 Use Demo Accounts to Practice Many exchanges like Binance and Bybit offer demo accounts or testnets. Practice trading with virtual money first. This helps you learn: How orders work Chart reading in real time Trading fees and order types Once you feel confident, move to small real trades. Final Simple Tips for New Crypto Traders Start with well-known coins like Bitcoin Ethereum Avoid chasing hype or FOMO (Fear Of Missing Out) Keep a basic trading journal or spreadsheet Learn from both wins and losses Crypto Trading Basics for Long Term Profit

Crypto Trading Basics for Long Term Profit

June 16, 2025
$3 Billion in Bitcoin Options Expire Today — Will BTC Crash or Bounce?

$3 Billion in Bitcoin Options Expire Today — Will BTC Crash or Bounce?

June 14, 2025
Trump vs Elon Musk: Bitcoin Dips as Tesla Crashes

Trump vs Elon Musk: Bitcoin Dips as Tesla Crashes

June 6, 2025
Binance Beats SEC—Crypto Cheers the Legal Victory

Binance Beats SEC—Crypto Cheers the Legal Victory

June 2, 2025
The VR Soldier

© 2024 The VR Soldier

Navigate Site

  • About
  • Contact
  • Privacy Policy
  • Terms and Conditions

Follow Us

No Result
View All Result
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases

© 2024 The VR Soldier