- DOT funding rates have fallen, meaning short traders have taken control of the market
- DOT price continued its month-long decline
Weekend trading began with a significant drop in Polkadot sales [DOT] financing rate. This indicates that several short positions have been opened, according to data from Santiment.
Read Polkadot [DOT] Price Prediction 2023-24
According to the on-chain analytics platform, DOT was pegged at -0.000213 at press time. It is important to note that increasing short positions often leads to an increase in the value of an asset. This led most short traders into a severely liquidated position.
According to data from Coinglass, liquidations in the cryptocurrency market over the past 24 hours totaled $18.53 million, with 6,720 traders liquidated. The DOT liquidations of $264,000 represented 1.5% of the total money withdrawn from the market.
In case you short Polkadot…
At the time of this writing, DOT was trading at $5.28. Its price has fallen by 2.33% in the last 24 hours. Trading volume also fell by 10% over the same period, according to data from CoinMarketCap.
Based on a daily chart assessment, DOT buying pressure has been steadily decreasing since November 3rd. The price of alt has fallen 5% in the past seven days. A closer look at the alt’s performance revealed that DOT’s distribution has steadily increased since the collapse of FTX. Since then, the price of DOT has fallen 26%.
The increase in DOT distribution has allowed sellers to control the market at the time of this writing. The DOT Directional Movement Index (DMI) position confirmed this. A look at the DMI revealed that the strength of the sellers (red) at 19.56 was solidly above that of the buyers (green) at 16.21.
Likewise, major momentum indicators were trending south at press time, indicating that buying pressure has subsided further. The DOT Relative Strength Index (RSI) held below neutral 50 in a downtrend at 42.34. Similarly, its Money Flow Index (MFI) was pegged at 48.38 at press time, also in a downtrend.
As the price of DOT fell, a reading of its On-Balance-Volume (OBV) showed a similar decline. Usually, when the price of a cryptocurrency asset and its OBV make lower peaks and troughs, the price decline is likely to continue. As of this writing, the DOT’s OBV is -74.703 million.
Polkadot’s development activity continued to climb, placing it above Solana and Cardano in terms of sub-ecosystems, repos, and weekly commits by developers.
So @Spotted is 2nd only to @ethereum in terms of sub-ecosystems, repositories and weekly commits by developers (according to @Artemis__xyz), but is perhaps the least discussed among the major smart contract protocols: what are the reasons? https://t.co/KYcleosH60 pic.twitter.com/yLTwGL1QoJ
— Chris Burniske (@cburniske) December 8, 2022
Over the past month, Polkadot’s development activity has increased by 5%.