The weekend’s operations began with a significant drop in the funding rates of Polkadot (DOT). According to data from Santiment, an on-chain analysis platform, this indicates that a large number of short positions have been opened.
Waiting for Polkadot to Fall
According to Santiment, DOT’s funding rate is fixed at -0.000213. It is worth noting that increasing short positions often lead to an increase in the value of an asset. This situation leads to a significant degree of liquidity of the investor who takes a position that the price will move in a downward direction.
According to data from Coinglass, liquidations in the crypto currency market reached a total of 18.53 million dollars in the last 24 hours, and 6 thousand 720 traders were liquidated. DOT liquidations of 264 thousand dollars correspond to 1.5 percent of the total amount withdrawn from the market..
At the time of this writing, the DOT is trading at $5.29. The DOT has gained 0.82 percent in the last 24 hours. According to data from CoinMarketCap, altcoin’s trading volume also fell by 10 percent in the same period.
Looking at the DOT’s daily chart, it seems that the buying pressure on the altcoin has been steadily falling since November 3. The price of the altcoin has fallen by 5 percent in the last seven days. A closer look at the price performance of the DOT shows that the distribution of the DOT has gradually increased since the collapse of the crypto currency exchange FTX. Since then, the DOT price has fallen by 26 percent.
The increased DOT distribution has caused sellers to take control of the market as of this writing. The position of the DOT’s Directional Movement Index (DMI) also confirms this. Looking at the DMI, it seems that the strength of sellers at 19.56 (red) is above the strength of buyers at 16.21 (green). Similarly, the main momentum indicators also move in the downward direction at the time of pressure, indicating that the buying pressure has fallen further. DOT’s Relative Strength Index (RSI) was below the 50 (neutral) level in a downtrend with 42.34. Similarly, the Money Flow Index (MFI) is also fixed at 48.38 at the time of this writing and is again moving in a downtrend.
As the price of DOT fell, the Stabilized Volume (OBV) showed a similar decline. Generally, when the price and OBV of a crypto currency make lower tangents and lower bottoms, its decline in price is expected to continue. At the time of this writing, DOT’s OBV was at -74.70 million.
The Data On The Chain
Polkadot’s development activity continued to climb, surpassing Solana (Dec) and Cardano (ADA) in terms of weekly activity of the ecosystem, repos and developers among altcoins.
Santiment had reported that Polkadot’s development activity increased by 5 percent last month.
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