Polkadot: Despite a 22% drop in April, can DOT reach $10 in May?

• After a rise in April, Polkadot’s network activity started to decline in May.
• Most market indicators looked bearish on DOT.

The last month was disastrous for Polkadot [DOT], as the token shed a substantial amount of its value. However, though its price action was not up to par, the blockchain’s network activity marked a record high. 

Polkadot in April

According to CoinMarketCap, April was a bloodbath for DOT as its price dropped by more than 22%. This had an impact on the token’s social metrics.

Notably, bearish sentiment remained dominant in the market last month, which was evident from its low Weighted Sentiment. Its Social Volume also registered a slight decline.

Apart from this, it was also surprising to see a massive decline in Polkadot’s Development Activity, which usually remained high.

Source: Santiment

Similarly, the blockchain’s network activity remained high last month. Polkadot recently posted a tweet highlighting a rise in its active users.

The blockchain has reached a new ATH for monthly active accounts since the start of 2022, when parachains first launched.

Among all the parachains, Moonbeam remained the top contributor to this achievement, followed by DOT, as their active accounts were the highest. 

The trend changed in May

While April remained active in terms of network activity, the trend changed in May. AMBCrypto analyzed Artemis’ data to find out how things will go for Polkadot in May.

As per our analysis, DOT’s daily active addresses declined in the last week. Thanks to that, the blockchain’s daily transactions also fell. 

Source: Artemis

At press time, DOT’s daily active addresses stood at 5.4k, with 40k daily transactions. Things in terms of captured value also didn’t look good. This seemed to be the case as both DOT’s fees and revenue fell.

On top of that, the blockchain’s state in the DeFis pace was also not on par, as its TVL declined after registering a promising spike on the 6th of May. 

Source: Artemis

DOT investors were also not enjoying profits, as the token’s value dipped by more than 1% in the last seven days.

At the time of writing, DOT was trading at $6.86 with a market capitalization of over $9.8 billion, making it the 14th largest crypto. 

Read Polkadot’s [DOT] Price Prediction 2024-25  

AMBCrypto then analyzed DOT’s daily chart to find which way it is headed. We found that DOT has failed to go above its resistance near $7.4 multiple times in the last few weeks.

DOT’s Chaikin Money Flow (CMF) registered a sharp downtick. The Relative Strength Index (RSI) also followed a similar trend, hinting that the chances of DOT’s price falling further were high. 

Source: TradingView