Polkadot shares exciting news but will this push DOT toward a bullish rally?
- Polkadot’s price action was still heavily bearish at the time of writing.
- Polkadot metrics show an improvement, indicating a recovering investor confidence.
Polkadot [DOT] traders may have been tormented especially considering the price action on the altcoin. As reported by AMBCrypto, on 10 October, the altcoin was unable to get past the $4 level. If this wasn’t all, sellers had a strong influence over the market.
How much are 1,10,100 DOTs worth today?
However, traders may find a sense of confidence in the network, especially after Polkadot’s latest announcement. As per crypto reporter Colin Wu, Polkadot’s development agency announced a new community-focused plan. As per the tweet, the network plans to deploy $22.08 million and 5 million DOT tokens to help projects have a meaningful impact in the future.
Polkadot development agency Web3 Foundation announced a new plan to deploy US$22.08 million and 5 million DOTs throughout 2024, which will augment the community-governed funding mechanism from the Polkadot Treasury to help projects that will have a meaningful impact on the future…
— Wu Blockchain (@WuBlockchain) October 10, 2023
Furthermore, Web3 Foundation also took to X (formerly known as Twitter) to share its views about the same. The Foundation highlighted the importance of a community. Furthermore, the update also stated that they aimed to empower teams and individuals through the latest program.
2/ We believe that growth should be driven by Polkadot’s strongest team: its community!
To help initiatives get off the ground, the program will target to deploy 20M CHF and 5M DOT throughout 2024.
— Web3 Foundation (@Web3foundation) October 10, 2023
A celebration that doesn’t feel like one
While DOT holders, developers, and supporters could be delighted with the announcement, DOT’s price action still showed a bearish bias. As per data from CoinMarketCap, DOT was still trading 6.69% lower over the last seven days and 0.69% lower in the last 24 hours.
Furthermore, data from coinglass also indicated that as of 10 October, the market favored short holders as compared to long holders. At the time of writing, 48% of long positions were outnumbered by the 52% of short holders. This wasn’t a good sign for the altcoin either.
Source: coinglass
However, data from Santiment revealed something that could make investors and traders hopeful of a recovery. As of 10 October, DOT’s Weighted Sentiment witnessed a slight recovery. While the metric was nowhere close to the highs of the last three months, an improvement in this metric indicated that investors could be moving toward a positive mindset toward DOT.
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Furthermore, DOT’s Development Activity saw an improvement, albeit not too drastic. A sign that some development was taking place. Additionally, DOT’s Social Dominance also recovered indicating that DOT was gaining momentum on the social front.
Source: Santiment
While this was enough to slowly restore investor confidence, Polkadot Insider shared another piece of information that may be vital for DOT’s recovery. On 10 October, Polkadot Insider posted an update that highlighted the reach of Polkadot’s projects in September. As per the update, the ecosystem’s parachains were reaching a vast audience and making waves in the market.
TOP 10 PROJECTS RELATED TO PARACHAIN ON POLKADOT BY WEBSITE REACH IN SEPTEMBER
📊 September’s Top 10 projects related to @Polkadot Parachain by Website Reach 🚀
🌐The Polkadot ecosystem is buzzing with activity! These parachains are making waves, reaching audiences far and… pic.twitter.com/YqUxaDpmuE
— Polkadot Insider (@PolkadotInsider) October 10, 2023
