Corrections in the crypto market are common, especially during a bear market run. What’s interesting to see are coins that perform well when most others follow the general market trend. Take Polkadot for example. The para-chain operator was the only top 15 token besides LUNA to record a positive weekly ROI. On closer inspection, whale purchases and an increase in daily active addresses might
Polkadot Daily Active Addresses
Looking at the chart, it’s easy to tell that Polkadot’s price correlates to how active its blockchain is. This was especially significant during the May-July bear market in 2021. Between 9-20 July, DOT’s daily active addresses spiked by nearly 40%, which was followed by. This was seen once again between January-February 2022 but this time a systematic decrease in active addresses was followed by a plummet in DOT’s price. Daily active addresses are the daily number of unique addresses that were active on the network as a sender or receiver. The metric is used to gauge the health of a network.
Recently, DOT’s daily addresses touched a 5-month low on March 7 but dynamics are looking positive once again. The count has risen by 21% in a single week, with the DAA touching close to 23,000. Coincidentally, DOT’s price rose by as much as 17% during the same time frame.
Whale Purchases
Polkadot has been a regular favorite among the top Binance Smart Chain whales. Data from Whalestats showed that DOT briefly featured on the top 10 purchased tokens on 12 March before losing its spot to other tokens. However, DOT was still the seventh most widely held token among the top 100 BSC whales at press time, with a 3.2% allocation to the total whale holdings.
Price
On the charts, Polkadot’s price was delicately positioned. The candles were trading within a symmetrical triangle – a pattern that is often formed before large price movements.
A quick look at the RSI’s and MACD’s uptrend showed that bulls were the more active force as the triangle took shape, suggesting that a price hike was just a stone’s throw away.
Conclusion
While the crypto market was riddled with corrections across the board, Polkadot was making steady progress. Its daily active addresses were improving along with whale purchases.
For the moment, Bitcoin’s price was ranging between $39K-$37K many expect a volatile week ahead. Should bulls win out the consolidation stage and a Bitcoin rally follows in the week to come, investors must not take their attention away from Polkadot.