Coin World reports:
After weeks of decline, the price of DOT surged by 9.73% within 24 hours. This spike is attributed to a significant amount of whale activity, large transactions, and stakes.
The substantial transactions of Polkadot (DOT) have caught the attention of the cryptocurrency community. In fact, despite DOT’s low price, the altcoin’s trading volume has increased by 33%. But that’s not all, Polkadot Watch tweeted,
“50,000 DOT ($291,500) transferred from an unknown wallet to another unknown wallet.”
Similarly, as whales continue to do so, the stakes in DOT have also significantly increased. According to a post by Toni Bitcoin on X (formerly Twitter), DOT has garnered a stake of $2.6 million.
“Polkadot has received a DOT stake of $2,600,000 ($14,378,021.96) as Whales continue to buy $DOT and put it into #staking.”
What is driving the whale activity?
These activities have sparked speculation about increased investment in the Department of Transportation. A significant factor driving whale activity and higher stakes in DOT is speculation around a DOT ETF.
According to Voice Lark, market sentiment is positive due to Coinbase’s potential application for a DOT ETF.
“Coinbase plans to launch a Polkadot ETF, marking a potential boost for DOT prices and popular Altcoins.”
General Market Sentiment
An analysis of DOT’s market sentiment by AMBCrypto indicates that it has been predominantly positive recently.
Specifically, audience sentiment is at 0.1325, z-score at 0.75, and heat at 0.83. Simply put, the crowd seems to have an optimistic outlook on DOT’s prospects on the price chart.
Indicators and Price Charts
At the time of writing this article, DOT traded at $5.87 after a 9.73% increase in the past 24 hours. However, despite the price increase, the trading volume decreased by 8.20% during the same period.
Moreover, Polkadot’s RSI, after crossing the RSI-based MA 44 from below, reads at 46, indicating signs of an uptrend. An ascending RSI typically signifies strengthening momentum while overall selling pressure eases.
Additionally, as of press time, the balance has soared from -$2.7 million to $949,000 in the past seven days. When OBV rises, it means buying pressure may be exceeding selling pressure.
This is a bullish signal, as an increase in OBV often precedes a rise in price.
Furthermore, according to Santiment data, the total supply held by whales has climbed from $48 million to $56.3 million over the past seven days. The continuous increase in whale accumulation demonstrates the confidence of long position holders in the direction and future potential of the altcoin.
Lastly, after four days of negative outflows, the net flow for DOT stands at -$12,476,000 as of press time.
