Polkadot, a well-established project in the cryptocurrency market, observed a significant reduction in demand during July. Analysis indicates that user activities on Polkadot’s platform are likely to close at their lowest levels since January. While Polkadot’s native token, DOT, has remained within a specific price range throughout the month, the surge in selling pressure has intrigued investors.
Polkadot User Numbers Decline
The activity metrics for Polkadot’s Relay Chain and parachains have hit their lowest point since the start of the year. Data from The Block reveals that 170,111 active addresses participated in at least one transaction on the Relay Chain this month, marking the least monthly active user count since January.
The new user activity on Polkadot’s Relay Chain has plummeted as well. Over the past 30 days, only 27,900 unique addresses executed their first transaction, showcasing a drastic reduction of over 75% compared to March, which saw a peak of 112,000 new addresses.
In parallel, the Parachain side of Polkadot also recorded a 21% decline, as illustrated by recent graphical data.
What Will Be DOT’s Price?
Currently, DOT is priced at $5.64, following a 1.31% decline in the last 24 hours. Since July’s beginning, DOT’s price has been oscillating within a horizontal channel. This price pattern is due to prolonged price consolidation, with neither strong buying nor selling pressure present.
The horizontal channel’s upper and lower bounds indicate resistance and support levels, respectively. DOT faced resistance at $6.53, while the support level stood at $5.56. Intense selling pressure has pushed DOT closer to the support line. Should this level fail to hold, the price could drop further to $4.93, the lowest in eight months.
Key Takeaways
– Polkadot’s lowest user activity since January.
– Significant decline in new user transactions.
– Parachain activity dropped by 21%.
– DOT price resistance at $6.53; support at $5.56.
– Potential price decline to $4.93 if the support fails.
However, should the support level be maintained and a rebound occur, the price could rise to $6.57, as depicted in the recent charts.