DOT’s funding rates dropped, signifying that short traders took over the market
DOT’s price continued on its month-long decline spree
Weekend trading commenced with a significant decline in Polkadot’s [DOT] funding rates. This indicated that several short positions have been opened, per data from Santiment.
Read Polkadot’s [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 increased short positions often lead to a rise in the value of an asset. This led to most short traders in a severely liquidated position.
Per data from Coinglass, liquidations in the cryptocurrency market in the last 24 hours totaled $18.53 million, with 6,720 traders liquidated. DOT liquidations of $264,000 accounted for 1.5% of the total sums removed from the market.
In case you are shorting Polkadot…
As of this writing, DOT traded at $5.28. Its price was down by 2.33% in the last 24 hours. Trading volume also declined by 10% within the same period, per data from CoinMarketCap.
On a daily chart assessment, DOT’s buying pressure steadily declined since 3 November. The alt’s price fell by 5% in the last seven days. A closer look at the alt’s performance revealed that DOT’s distribution climbed gradually since FTX’s collapse. Since then, DOT’s price has fallen by 26%.
Increased DOT distribution put sellers in control of the market as of this writing. The position of DOT’s Directional Movement Index (DMI) confirmed this. A look at the DMI revealed the sellers’ strength (red) at 19.56 sat solidly above the buyers’ (green) at 16.21.
Likewise, key momentum indicators were southbound at press time, indicating that buying pressure fell further. DOT’s Relative Strength Index (RSI) rested below the 50-neutral spot 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 DOT’s price fell, a reading of its On-Balance-Volume (OBV) showed a similar decline. Usually, when the price of a cryptocurrency asset and its OBV are making lower peaks and lower troughs, the price decline is likely to continue. As of this writing, DOT’s OBV was -74.703 million.
On the chain…
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 @Polkadot is 2nd only to @ethereum in terms of sub-ecosystems, repos, and weekly commits by developers (according to @Artemis__xyz), but is perhaps least discussed amongst the major smart-contract protocols: thoughts on the reasons for this? https://t.co/KYcleosH60 pic.twitter.com/yLTwGL1QoJ
— Chris Burniske (@cburniske) December 8, 2022
In the last month, Polkadot’s development activity grew by 5%.