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The Polkadot token has crashed by double digits prior 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 following degree to look at is $3.9
Barely two weeks in the past, bets towards many altcoins have been on the rise. Santiment knowledge indicated that Polkadot (DOT/USD) was among the many cryptocurrencies focused by shorts on main exchanges. At the time of Santiment knowledge 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 chargeable for this?
The particular reply to the query could possibly be sure, though that’s not all the time the case. Increased brief positions can truly enhance an asset’s worth. That occurs when traders cowl their brief positions, resulting in a market phenomenon often called a “short squeeze.” However, because it appears to be like, there are not any indicators of a brief squeeze for DOT. The cryptocurrency maintains a downtrend, most likely 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 for the reason that bull market began. From the chart, DOT trades at its lowest degree since December 2020. Evidently, the cryptocurrency has misplaced all of the positive factors it amassed throughout the bull market of 2021.
The quantity indicators present that liquidity is waning as DOT heads decrease. The worth is ready to search out help at $3.96 subsequent. The present worth zone may curiosity consumers since that is the place the bull market began.
Concluding ideas
It could 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.
Buyers may 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 look at. A bearish break at $3.9 may pit DOT beneath $2.
Where to purchase DOT
eToro
eToro gives a variety of cryptos, corresponding to 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 without doubt one of the largest cryptocurrency exchanges on the earth. It is best suited to extra skilled traders and it gives a lot of cryptocurrencies to select from, at over 600.
Binance can 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, corresponding to; peer-to-peer buying and selling, margin buying and selling and spot buying and selling.
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