The post Polkadot Faces Bearish Trends Amid Declining Activity and User Engagement appeared on BitcoinEthereumNews.com.

Recent analyses have shown that Polkadot (DOT) is experiencing significant declines in both user activity and market momentum, raising concerns among investors. While DOT managed to record a 2% gain in the past 24 hours, its trading volume has fallen sharply, indicating reduced investor interest and engagement with the token. “A continued drop in user activity could further erode the asset’s market value,” stated a senior analyst at COINOTAG, highlighting the implications of these trends. Polkadot’s daily activity plummets to 4,200 users, raising red flags for investors as bearish patterns emerge. What does this mean for DOT’s future? Polkadot forms a head and shoulders pattern indicating potential decline Recent chart analyses indicate that Polkadot has developed a bearish head and shoulders pattern on its daily price chart. This technical configuration often signals a forthcoming bearish reversal, suggesting a potential decline toward the critical support level of $3.47. Traders and analysts are watching closely as DOT’s attempts to breach the resistance at the neckline have been met with repeated selling pressure, reflecting a lack of buying confidence in the market. (Source: Tradingview) The recent drop in the Chaikin Money Flow (CMF) also signals that the selling pressure is currently dominating the market dynamics. This trend points to an increasing chance of a price drop, especially if strong selling persists. Furthermore, the Bollinger Bands are indicating weakening bullish momentum, further reinforcing the possibility of a market downtrend unless buyers can regain control and push for a breakout above the neckline resistance at $7.56. Declining network activity could hinder gains Beyond price movements, network activity is another critical factor affecting Polkadot’s market outlook. Recent data from TokenTerminal reveals that Polkadot’s daily active users have dropped significantly to 4,200, marking the lowest engagement in over a month. Additionally, daily revenue metrics have suffered, falling…

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Filed under: News - @ December 27, 2024 11:19 pm