Polkadot [DOT] traders may have been tormented especially considering the price action on the altcoin. As reported by Cryptopurity, 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.
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.
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.
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.
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.
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.
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.