• Polkadot [DOT] enjoyed a 13% hike in the last seven days.
• Long/short ratio suggests bearish sentiment around DOT, however, Open Interest stabilized at a low level.
• Polkadot’s NFT volume was impressive but it still lagged behind many L1 blockchains in terms of active users.
Polkadot’s Price Hike
Polkadot [DOT] experienced a 13% hike in the last seven days, bringing fresh breath into the market; yet traders were not as enthusiastic as they once were.
The long/short ratio represents the amount of an asset available for short selling against the amount for buying and serves as a measure of investors’ expectations. The data showed that DOT’s long/short ratio fell to 0.97, indicating bearish sentiment by traders.
Known as the total number of future contracts held, the Open Interest determines market strength while assessing market sentiment. Contrary to what was seen with the Long/Short ratio, Polkadot’s Open Interest had stabilized at a low level which suggests that liquidation suffered by shorts may be over and could be signs of recovery for DOT prices.
Polkadot also saw impressive Non-Fungible Token (NFT) volumes between 11 and 24 June with 4.82 million recorded at its peak; suggesting interest in digital collectibles linked to Polkadot had spiked significantly during this time period.
However, Polkadot still found it difficult to compete with other Layer One (L1) blockchains as regards active users – recording only 4,000 active users at press time – indicating that many addresses might not be holding on to their DOT tokens for long periods of time.