- DOT funding levels have fallen, which means that card dealers have dominated the market
- DOT price continued its one-month downtrend
Trading started the weekend with a significant decline in Polkadots [DOT] funding rates. This indicates that many short positions have been opened, according to Santiment data.
Read Polkadots [DOT] Price forecast 2023-24
According to the analytics platform for the chain, the DOT was pegged at -0.000213 at the time of publication. It is important to note that increasing short positions often increase the value of the asset. This resulted in most card dealers ending up in a huge liquidation situation.
According to Coinglass data, liquidations in the cryptocurrency market in the last 24 hours totaled $18.53 million, with 6,720 traders liquidating. The DOT liquidation of $264,000 was 1.5% of the total amount removed from the market.
If you short Polkadot…
At the time of 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.
In the daily chart review, the buying pressure in the DOT has been steadily declining since November 3. The price of the alternative has fallen by 5% in the past seven days. A closer look at the performance of alts revealed that the distribution of DOT has risen gradually since the collapse of FTX. Since then, the price of DOT has fallen by 26%.
Increasing DOT distribution put vendors in control of the market at the time of writing. The Department of Transportation’s Directional Movement Index (DMI) website confirmed this. A look at the DMI revealed that the strength of the sellers (red) at 19.56 was strongly outperformed by the buyers (green) at 16.21.
Likewise, the major momentum indicators were heading south at the time of publication, indicating further easing of buying pressure. The DOT’s Relative Strength Index (RSI) has stabilized below the neutral point of 50 in a downtrend, at 42.34. Similarly, the Money Flow Index (MFI) was holding at 48.38 at the time of publication, which is also in a downtrend.
As the price of DOT declined, the On Balance Volume (OBV) reading showed a similar decline. Typically, when the price of a cryptocurrency asset and its OBV makes lower highs and lower lows, the price is likely to continue lower. At the time of writing, the DOT’s OBV is -74.703 million.
On the chain…
Polkadot’s development activity has continued to climb, placing it above Solana and Cardano in terms of sub-ecosystems, scrapes, and weekly developer commitments.
So @thedotted He is only 2 @tweet In terms of sub-ecosystems, scratches and weekly commitments by developers (according to @tweet), but perhaps the least discussed among the major smart contract protocols: Do you have thoughts on the reasons for this? https://t.co/KYcleosH60 pic.twitter.com/yLTwGL1QoJ
– Chris Burniske (@cburniske) December 8, 2022
Last month, Polkadot’s development activity increased by 5%.