The Polkadot token has crashed by double digits prior to now two weeks
The cryptocurrency was among the many tokens closely shorted on main exchanges
DOT maintains a downtrend and the following degree to observe is $3.9
Barely two weeks in the past, bets in opposition to many altcoins had been on the rise. Santiment information indicated that Polkadot (DOT/USD) was among the many cryptocurrencies focused by shorts on main exchanges. On the time of Santiment information on December 10, DOT was buying and selling at $5.3. The cryptocurrency now exchanges arms at $4.5, a lack of 17%. Are the brief positions answerable for this?
The particular reply to the query may very well be sure, though that’s not at all times the case. Elevated brief positions can really enhance an asset’s worth. That occurs when traders cowl their brief positions, resulting in a market phenomenon referred to as a “brief squeeze.” Nonetheless, because it appears, there are not any indicators of a brief squeeze for DOT. The cryptocurrency maintains a downtrend, in all probability orchestrated by elevated promoting.
DOT outlook as worth heads to the 2020 lows
Turning to the weekly chart offers a glimpse of Polkadot buying and selling because the bull market began. From the chart, DOT trades at its lowest degree since December 2020. Evidently, the cryptocurrency has misplaced all of the positive aspects it amassed through the bull market of 2021.
The amount indicators present that liquidity is waning as DOT heads decrease. The value is ready to search out help at $3.96 subsequent. The present worth zone might curiosity patrons since that is the place the bull market began.
It will be attention-grabbing to see how the DOT price behaves at or round $4. Any potential bullish reversal ought to begin right here. There isn’t a indication of that but, because the cryptocurrency stays very bearish.
Patrons might maintain DOT in consolidation mode on the essential zone earlier than discovering the power to interrupt greater. DOT-related developments and improved sentiment within the broader crypto sector are the occasions to observe. A bearish break at $3.9 might pit DOT beneath $2.
The place to purchase DOT
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Binance is likely one of the largest cryptocurrency exchanges on the earth. It’s higher suited to extra skilled traders and it presents numerous cryptocurrencies to select from, at over 600.
Binance can also be recognized for having low buying and selling charges and a a number of of buying and selling choices that its customers can profit from, comparable to; peer-to-peer buying and selling, margin buying and selling and spot buying and selling.