In this comprehensive analysis, we delve into Polkadot’s recent price surge, driven by both technical and on-chain indicatorsPenetrating the daily Ichimoku cloud could indicate continued price appreciation towards $8.Polkadot (DOT) has broken above the 4-hour Ichimoku cloud. Returning to the cloud in the 4-hour timeframe could signal a trend reversal. On the daily timeframe, the price of Polkadot is approaching the lower boundary of the Ichimoku cloud. The chart illustrates that the number of new addresses on the Polkadot Relay Chain has experienced two consecutive monthly declines. This trend is a bearish indicator. Polkadot is currently struggling to attract new entrants to the network.A sustained reduction in the number of new addresses can impact the overall health and expansion of the Polkadot ecosystem.Read More: What Is Polkadot (DOT)? Active addresses are a key indicator of user engagement and network health. In the context of Polkadot, this decline could mean several things:The chart below illustrates the 7-day moving average (7DMA) of daily transfers on the Polkadot Relay Chain. This highlights a significant downward trend. Following a peak in January 2024, where daily transfers nearly reached 40,000, the number of transfers has steadily declined. This decline in transfer volume can have several implications for Polkadot’s price. Reduced transfer activity often correlates with lower overall network usage and decreased demand for the native DOT token (in the mid-term).Read More: Polkadot (DOT) Price Prediction 2024/2025/2030DisclaimerIn line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
