You can also read this news on BH NEWS: Polkadot (DOT) Faces Double-Digit Decline Amidst Bearish bitcoin Market Trends
The Proof-of-Stake blockchain network activity has seen a decline in demand since the beginning of the year, leading to a double-digit drop in the value of Polkadot (DOT). The 24-hour price movements of DOT indicate a significant bearish presence, with the Directional Movement Index (DMI) showing a higher negative direction index than the positive, suggesting stronger selling pressure.
DOT’s Average Directional Index (ADX) rise to 26.19 confirms the strength of the downtrend, indicating a strong market trend. The Moving Average Convergence Divergence (MACD) of DOT has been positioned below the trend line since December 31, 2023, signaling a bearish crossover and potential sell signal.
The increased selling pressure has contributed to a 20% decrease in DOT’s price since the start of the year. Futures open interest in the cryptocurrency‘s derivatives market has also declined, with Coinglass data showing a 17% drop from January 1 to January 21, 2023.
Despite falling prices and open interest, DOT futures traders continue to open leveraged positions betting on price increases. However, positive funding rates on crypto exchanges have not prevented liquidations for long traders, with the highest liquidation volume of the year recorded at $8 million on January 3.
The data from Coinglass and the observed technical indicators suggest a bearish outlook for DOT, with market trends favoring sellers and long position holders facing liquidation risks in the current market climate.
The post first appeared on BH NEWS: Polkadot (DOT) Faces Double-Digit Decline Amidst Bearish Market Trends

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