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The Polkadot token has crashed by double digits up to now two weeks
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The cryptocurrency was among the many tokens closely shorted on main exchanges
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DOT maintains a downtrend and the subsequent stage to look at is $3.9
Barely two weeks in the past, bets towards 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 palms at $4.5, a lack of 17%. Are the quick positions answerable for this?
The particular reply to the query might be sure, though that’s not all the time the case. Elevated quick positions can really increase an asset’s value. That occurs when buyers cowl their quick positions, resulting in a market phenomenon referred to as a “quick squeeze.” Nonetheless, because it seems to be, 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 value 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 stage since December 2020. Evidently, the cryptocurrency has misplaced all of the features it amassed in the course of the bull market of 2021.
The quantity indicators present that liquidity is waning as DOT heads decrease. The value is ready to seek out assist at $3.96 subsequent. The present value zone may curiosity patrons since that is the place the bull market began.
Concluding ideas
It might be fascinating to see how the DOT price behaves at or round $4. Any potential bullish reversal ought to begin right here. There isn’t any indication of that but, because the cryptocurrency stays very bearish.
Consumers may maintain DOT in consolidation mode on the essential zone earlier than discovering the vitality to interrupt larger. DOT-related developments and improved sentiment within the broader crypto sector are the occasions to look at. A bearish break at $3.9 may pit DOT beneath $2.
The place to purchase DOT
eToro
eToro gives a variety of cryptos, resembling Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro customers can join with, be taught from, and replica or get copied by different customers.
Binance
Binance is likely one of the largest cryptocurrency exchanges on this planet. It’s higher suited to extra skilled buyers and it gives numerous cryptocurrencies to select from, at over 600.
Binance can also be identified for having low buying and selling charges and a a number of of buying and selling choices that its customers can profit from, resembling; peer-to-peer buying and selling, margin buying and selling and spot buying and selling.