Polkadot showing bullish behavior, but investors may want to see through the complete situation before investing

Polkadot topped the list of blockchains in terms of development activity. Also, it has been growing in terms of capital gains in the past week. But, Polkadot (DOT) metrics and indicators are not supporting its growth further. Polkadot [DOT] recently made headlines as it topped the list of tokens in the Polkadot ecosystem in terms of social activity. This development was encouraging and optimistic. It showcased the popularity of DOT in the crypto community. And investors are making up their minds to invest in the Crypto asset.

 Market performance of the Crypto Asset –

As we can see it has been on top crypto tokens. Polkadot (DOT) also grabbed the first spot in the highest development activity.

Despite these updates and market positions, things did not look very favorable for DOT. As per market records, DOT registered a negative 3% performance in the past week. At press time, it was trading at $5.55 with a market capitalization of more than $6.3 billion.

Points to be taken into consideration –

DOT’s stochastic was in an oversold position earlier. This was a major bullish signal which created an investment opportunity in the digital asset. Even after DOT topped the list of blockchains in terms of development activity, Santiment’s chart revealed a different story about the crypto asset.

As per data from Santiment, DOT’s development activity declined over the last week. This wasn’t a very good sign for the blockchain. DOT’s volume witnessed a fall over the past week. This may create an alarming situation in the coming week and may create a bearish market for DOT investors.

But the derivatives market heaved a sigh of relief, as DOT’s Binance funding rate registered an increase. The Polkadot (DOT) social volume also spiked last week, reflecting its popularity.

A bear market may appear –

DOT’s daily chart revealed that there is a chance that things might get worse.  As several market indicators supported a price drop down in the coming days. If we talk about the Relative Strength Index (RSI) registered a decrease, which was a bearish sign. This may create some trouble for the asset and the investors in the market.

The On-Balance Volume (OBV) followed also showed a chance of a price decline. A similar conclusion was revealed with the Exponential Moving Average (EMA) Ribbon. Therefore, investors should exercise caution before investing in Polkadot (DOT) in the coming days.