Recent Polkadot drew attention when DOT topped the list of tokens in the ecosystem in terms of social activity. This development is very optimistic, as it shows the popularity of DOT in the crypto community.
In addition to the aforementioned information, Polkadot won first place for highest growth activity.
However, despite these updates, things don't look so favorable for DOT. According to CoinMarketCap, DOT has recorded a performance of -4.7% over the past seven days. At the time of writing, it is trading at $5.55 with a market capitalization of over $6.3 billion.
DOT investors should be cautious
The DOT stochastic indicator is in the oversold position, which is a major bullish signal. Furthermore, although DOT is at the top of the list of blockchain development activity, but Santiment's chart tells a different story.
According to data from Santiment, DOT development activity has veered southward and declined over the past week. This is not a good sign for blockchain. The volume of DOT has also decreased over the past few days.
However, the derivatives market breathed a sigh of relief when the funding rate Binance of DOT has increased. The token's social volume also skyrocketed last week, reflecting its popularity.
But beware of bears…
The DOT daily chart reveals that things could get worse, as a number of market indicators support a sharp drop in prices in the coming days. For instance, the Relative Strength Index (RSI) has recorded a downtrend, which is a bearish sign.
On-Balance Volume (OBV) also follows a similar route, adding to the potential for a price drop. The same is signaled by the EMA Ribbon. Therefore, investors need to be cautious before placing bets on Polkadot in the coming days.