In July, Polkadot (DOT), one of the market’s established projects, experienced a noticeable drop in demand. Reviews of activities on the DOT side suggest that July will close at the lowest levels since the beginning of the year. On the other hand, DOT’s local token has been moving within a specific price range since the beginning of the month, but the increase in selling pressure has excited investors.
Polkadot User Numbers Decline
Polkadot’s user activity on the Relay Chain and parachains has dropped to its lowest level since January.
According to data provided by The Block, 170,111 active addresses completed at least one transaction on Polkadot’s Relay Chain this month, regardless of whether they were senders or receivers. This indicates that the network has reached the lowest monthly active user count since the beginning of the year.
A noticeable drop in new user activity on Polkadot’s Relay Chain was also observed. In the last 30 days, 27,900 unique addresses conducted their first transaction on the network. This level shows a more than 75% decrease compared to March, when 112,000 new addresses were reached, marking the highest monthly demand period of the year.
In addition to the Relay Chain, the Parachain side also experienced a 21% drop, as reflected in the graphs below.
What Will Be DOT’s Price?
As of the time of writing, DOT is trading at $5.64 after a 1.31% drop in the last 24 hours. DOT’s price has been moving within a horizontal channel since the beginning of July.
The formation of this horizontal channel is due to the price consolidating for a long time. The price is moving within this range because there is no significant pressure on either the buying or selling side.
The upper line of the mentioned channel is considered resistance, while the lower line indicates support. DOT encountered resistance at $6.53, and the support level was seen at $5.56.
DOT has approached the support line due to increased selling pressure. If the bulls fail to defend this level, the trend may turn downward, deepening the price drop. In this case, the price could fall to $4.93, the lowest point seen in the last eight months.
However, if the mentioned support is defended and a rebound occurs from this region, the price could rise to $6.57, as reflected in the charts.
